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Saturday 01.10.2016 | Name days: Lāsma, Zanda, Zandis
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FM: it is not possible to satisfy all requests from ministries in next year’s budget

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUMinistries are requesting at least EUR 400 million in the next year’s budget, but it is clear that it will not be possible to satisfy all requests, said Finance Minister Dana Reizniece-Ozola.

The minister believes that discussions that took place with ministers last week and yesterday have been very useful.

During talks with ministers, Reizniece-Ozola informed them about the capabilities of the next year’s budget if the GDP growth grows by 3% and budget capabilities if GDP growth grows more slowly. Fiscal space will also depend on GDP growth. According to the minister, an estimate will be known in the middle of summer.

Q1 2016 was largely sluggish in terms of growth. Growth rates have become quicker since then. Tax collection has improved as well. According to the spring estimate, the next year’s budget fiscal space will be EUR 9 million, said Dana Reizniece-Ozola.

Provisional information compiled by Finance Ministry shows that Latvian ministries want EUR 400 million to satisfy their needs.

«Of course, desires do not meet capabilities, even in spite of the fact that ministers are not too utopian in their requests for funding. In addition, EUR 150 million of the requested EUR 400 million are requested for healthcare. It is clear that we will only be able to satisfy some of the requests,» – said the minister.

Reizniece-Ozola mentioned healthcare as the most problematic field for funding. This is why Finance Ministry has requested Healthcare Ministry to submit a more detailed budget request. «There is an enormous medical programme that attracts funding. However, it impossible to predict who much each area is financed. Before providing funding to healthcare, we need to establish a clear control mechanism,» – added the minister.

In regards to funding for education, Reizniece-Ozola admitted that Education and Science Ministry’s partners have not expressed much support for the new financing model. There are many unanswered questions ESM still has to answer. «I believe Minister Karlis Sadurskis has a vision, but it is impossible to carry out important reforms overnight. In any case, we need to know how much the education reform will cost, because the previously mentioned EUR 27 million have reached EUR 40 million,» – she added.

In addition, ministries have to submit the necessary funding amounts to finance political initiatives by June. Reizniece-Ozola expressed hope that ministries’ requests do not turn out too large. This is why ministries have reached an agreement that each ministry would submit five most important project plans to Finance Ministry for review.

Ref: 102.109.109.7895


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