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Wednesday 07.12.2016 | Name days: Dzirkstīte, Anta, Antonija
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Vejonis: indexes of Latvia’s economic development are not satisfactory

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU«Indexes of Latvia’s economic development have not been satisfactory in the first quarter of 2016. If this continues, it will be very difficult for the country to come close to the average development level in the European Union. In order to make it possible to divert more money to priority sectors, especially to the healthcare sector, it is necessary to increase state budget revenue. This can be achieved by combating grey economy and tax avoidance schemes more effectively,» – said Latvian President Raimonds Vejonis during his meeting with Finance Minister Dana Reizniece-Ozola on Tuesday, 3 May.

The President noted that the current approach to combating grey economy has not provided the desired results. This is because, according to estimates of researchers, the proportion of grey economy in Latvia still covers approximately one-fourth of GDP, as reported by the State President’s press-service.

«In order to reduce the volume of grey economy, it is necessary to employ complex measures that would function in a long-term perspective. In addition, it is highly important to make sure the country’s business environment does not suffer as a result of grey economy combating measures,» – emphasized Vejonis.

During the meeting, the president listened to the Finance Minister’s opinion in regards to the progress in the assessment of state budget expenditures. Vejonis said it is important to continue this task in order to make expenditures more effective, compliant with state priorities and comprehensive to society.

According to Vejonis, it would be possible to secure larger budget revenue by providing wider financial availability to Latvian entrepreneurs, including access to EU fund programmes. Both officials agreed that the government has to continue developing regulations necessary for the use of finances provided by EU funds, especially in the construction sector.

Having discussed the country’s tax policy, the President turned the minister’s attention to the fact that a stable business environment does not include constant changes to established rules, as the problem was described by local businessmen and foreign investors multiple times in the past. «I would be best for Latvia to use the experience of economically developed countries to create a stable tax environment,» – admitted Vejonis. Reizniece-Ozola told him that there will not be any significant changes to the country’s tax policy during the formation of next year’s budget.

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