World Bank delivers harsh recommendations

  • 2010-05-28
  • TBT Staff

RIGA - The World Bank delegation that visited Riga this week has recommended the country implement extreme social sector reform in a bid to further slash the budget.

The World Bank said Latvia, which has been the hardest-hit EU country by the crisis, should focus future cuts on pensioners.

By cutting the tax exemption limit for monthly pensions from LVL 165 to LVL 80, the government could generate additional revenue of up to LVL 85 million. Elimination of pension supplements based on contributions prior to 1996 could save a further LVL 120 million annually.