There is no contradiction between a responsible fiscal policy and economic growth. Both approaches, if successfully balanced, can ensure a good and stable environment for investments and business; economic competitiveness and long term growth, the Economy Minister Daniels Pavluts said during a Board meeting of the Latvian Free Trade Union (LBAS).
«Currently, there are some extremes noticed in discussions in society and among economists – it is either about a responsible fiscal policy, or a responsible growth policy. However, the example of Latvia and Baltic States in general shows that responsibility and economic growth are not mutually exclusive, but mutually complementary notions. Latvia is currently being noticed internationally for such a responsible attitude – Latvia’s rating improve, loan terms decrease, investors’ interest for Latvia increases, and the country’s reputation and recognition also improves,»- the Economy Minister pointed during the meeting.
Pavluts informed the union representatives during the meeting on Wednesday, June 27, about the progression of the National Development Plan (NDP), pointing that, so far, the plan lacks sufficient clarity about strategic investment choices and the balance among three priority directions. However, compared with the previous NDP, work is being done in far more coordinated fashion and there are justified reasons to hope that the result will not be so fragmented.
The minister said that the NDP group and the government have a discussion planned: the goal of which is to coordinate all the directions of the NDP, ensure the involvement of various sides, and concentrating on the main goal – an economic breakthrough. Pavluts also invited the union representatives to realize that no one minister or the government as a whole can ensure an «economic breakthrough» – it can only be done through cooperation of all sides. The objective of the government is to create an institutional and business environment; offer support and break down the barriers between businessmen and residents, so that they can work successfully and create economic worth. He also said that one of the main preconditions to live better and raise the standards of living in Latvia will be increasing productivity in all sectors and branches of economy. This applies to individuals, companies and the government. The precondition to increasing productivity is the investments in the development of the human capital – knowledge and skills.