RIGA - The government started discussion on next year’s budget on Nov. 1, reports LETA. The informative report on medium-term macroeconomic development and fiscal policy framework for 2012-2014, budget consolidation measures for 2012-2014 and Latvia’s stance on the main problems in talks with International Loan Program partners within the framework of the fifth Review Mission were on the agenda of the Cabinet’s closed door session.
The government was also to hear Finance Minister Andris Vilks’ (Unity) report on state budget’s base expenditures for 2012-2014 and decide on the bill on assuming long-term commitments for 2013-2014 to fund measures envisaged by Latvia’s National Euro Changeover Plan and their inclusion in the 2012 state budget bill.
Last week, Prime Minister Valdis Dombrovskis (Unity) held a special seminar for the new Cabinet ministers on the budget to inform them about its formation process, their tasks, functions and areas of responsibility.
Vilks previously said that the budget will be drafted swiftly to ensure that it is submitted to the parliament on Dec. 6. The required consolidation amount will still be harmonized with the international lenders. Vilks estimates that the budget will be consolidated by 100-150 million lats (142.8 – 214.2 million euros).
The minister said that the budget will be consolidated mostly by reducing expenditures.