The Latvian Economy, November 3, 2011
Latvian budget reforms: fiscal discipline needs immediate improvement
- Latvia has managed to reduce the budget deficit, and fulfilling the Maastricht budget deficit criterion in 2012 is possible.
- The budget gap is not yet closed. The government needs to look into all possibilities for reducing expenditures and increasing revenues by improving tax administration, but not by raising taxes.
- One of the tasks for the current government is to strengthen fiscal discipline by adopting the fiscal discipline law as soon as possible; this would be a cornerstone for ensuring a sustainable budget and lowering the debt level.