Edzus Vejins on Nov. 12 said that reduction of the social budget
deficit should remain a priority of the government's fiscal policy
regardless of the outcome of the referendum about the pension law
held Nov. 13.
If the old system is retained, the resulting financial deficit will
grow with every year. Such a system cannot be viable in the long run.
"Properly balanced state revenues and costs, and stable national
currency form the reliable foundation on which further development of
Latvian economy should be based. Therefore we confirm our support of
efforts by the government headed by Prime Minister Andris Skele to
stabilize the national financial system," Vejins said.
He said that the state had toughened its fiscal policy aimed at
reducing the budget deficit.
"The social budget currently has the largest deficit. In order to
improve the situation, considerable changes were made to the pension
law, and measures were taken to increase revenues by imposing higher
excise tax on separate products and stepping up the fight against tax
evasions," Vejins said.