I am against raising taxes to cover budget deficit - Latkovskis

RIGA - The head of New Unity's group at Saeima Ainars Latkovskis told LETA that he is against raising taxes to cover the budget deficit, which is why he too is against the recent proposal to increase the budget deficit.

Laktkovskis told LETA if it decided to increase the budget deficit, then this would mean that financing will have to be sought to pay back the borrowed amount. This would mean raising taxes, and the prime minister is against this, the politician said.

Asked about other possible ways salaries for healthcare workers could be increased, Latkovskis said that nothing has changed since the position expressed by New Unity on Friday.

As reported, For Development/For this week proposed to find the additional EUR 60 million necessary for increasing medics' wages by increasing the budget deficit, the party said in its statement to the press. 

For Development/For called on Prime Minister Krisjanis Karins (New Unity) and coalition partners to include the necessary EUR 60 in 2020 budget expenditures.

Daniels Pavluts (For Development/For) confirmed in a conversation to LETA that the party will urge partners to solve the issue on medics' wages and increase budget deficit.

The politician reminded that the European Commission in its assessment of Latvia's 2020 budget, noted the negative impact of the tax reform adopted by the previous government, warning about the risks. At the same time, the draft budget has been assessed positively.

The political force said that Latvia has a small budget deficit and increase of funding for health care sector by about 0.2 percent of GDP is possible. The party noted that many other EU countries have larger budget deficits and government debts.

According to the European Commission's methodology, Latvia's budget deficit (0.6 percent of GDP) is lower than average in the euro area (0.8 percent of GDP). Latvia's government debt (36 percent of GDP) is the second lowest in the euro area and several times lower than average (86 percent of GDP).