Budget experts: there is a very high risk that budget expenditure or tax burden will be reduced | New

Riga, November 28, LETA. The Budget Disciplinary Board encourages the preparation of the interim budget in accordance with the maximum budget expenditures for 2019, which are approved by the Budget Law for medium-term budgets for 2018, 2019 and 2020, the LETA agency expressed in the board.

The Council was informed that the Budget Disciplinary Board had held a regular meeting on Wednesday to consider the proposed amendments to the Budget and Finance Management Act and the prospects for budgetary developments.

The Council noted that the Saeima Committee on Budget and Finance had begun to examine a proposal for amendments to the Budget and Finance Management Act, mainly in connection with the interim budget regulation, until the new Saeima approves the new government. The proposal examined by the Saeima Commission calls for the lifting of the monthly budget limit to be limited to one quarter of the expenditure approved the previous year.

"The Budget Disciplinary Board suggests that, when preparing the interim budget, the maximum budgetary outlays for 2019, as approved by the 2018, 2019 and 2020 medium-term budget framework law, be increased by Increases in pensions, benefits and wages that were not average, the term of framework law must be fully offset by the reduction of other government budget expenditures, "said the council.

The Council also noted that the government had incurred high expenditures, lacking sufficient resources in the state budget plans, which could lead to difficult choices for the 2019 budget, as well as difficulties for the governments. political parties to implement priorities in the government formation process. This is particularly problematic for a deficit-generating budget in a context of rapid economic development.

"There is a very high risk that, under an insufficient control of the level of budgetary expenditure, it is now necessary to reduce budgetary expenditure or increase the tax burden in order to compensate for the imbalances," the council said.

The Budget Disciplinary Council is an independent collegial body created to oversee the monitoring of budgetary discipline.

At the Saeima Council, Jan Plato, professor at the Technical University of Riga, Ingāra Eriņe, professor at the Technical University of Riga, Andžs Ūbelis, professor at the University of Latvia, Andris Ubelis, Professor at the University of Latvia, Innu Šteinbuku, Director of the Department of Economics of Riga School of Hansen, (Ülo Kaasik).