Harmony Center Saeima fraction head Jānis Urbanovičs

The governments offered macro-economic forecast of 3.3 % GDP in 2011 is too optimistic deliberately, that way postponing even bigger budget cuts, the political association Harmony Center Saeima fraction head Jānis Urbanovičs (Urbanovics) is convinced.

Coalition members lied about many matters both before and after the elections, for example, they said they would not raise taxes, yet one of the biggest lies is exactly the too optimistic macro-economic forecast, Urbanovics informed the agency LETA.

Latvia is the only country in the post-crisis period forecasting GDP growth exceeding 3%. This is simply lying to people and themselves, says Harmony Center representative, adding this is more sly than courageous.

At the beginning greater revenue can be forecast, in order to achieve smaller budget cuts, but this means the state budget will be reduced part by part, requiring additional cuts and budget amendments also next year.

The politician is skeptical also about economists hopeful forecasts, pointing out each party has its own economist, and each economist – his own feelings and likes.

Urbanovics says Harmony Center could not get introduced with the budget draft just recently, but they are already expressing their negative attitude towards tax raise, as it will propel businessmen looking for friendlier environments and hinder the economy development.

Harmony Center fraction head reveals voters are most likely to forgive the lies, but they are to evaluate the budget and give constructive views.