Latvian Political Monitor

@MinPres Thank you for the call, it was a good, constructive discussion prior to next week's Brussels MFF meetings.

Reviewing budget expenditures allows us to understand which funds can be used more effectively, so ministries have been told—we know what you have “in your stomach”. We can no longer live like during Covid-19, when we simply scooped from the deficit and there was more money than ever https://t.co/SbUI1hyG0r

@andrislov @JazepsBasko Ireland made an offshore. Now this possibility is forbidden in the EU.

@ivars_auzins @akberzins @AndrisKulbergs That is indeed true. From my (financial) sphere — take the budget deficit, for instance. Social media holds the view that 'let's fire civil servants', put all salaries at the minimum at best, and everything will be fine. That is classic financial illiteracy. And on a truly apocalyptic scale.

@10Salaca @VirtuvesSarunas @armandsbrants @tv24_lv @presesklubs I'm smiling! :)

Thank you, Gitanas. It is a victory, but at the same time, it comes with a tremendous responsibility to the people of Latvia to deliver the change they have demanded. We have our hands full making it happen. I greatly value our friendship and the close cooperation between us and our countries. We must stand strong together — as Baltic nations and as 🇪🇺 Eastern Flank countries bordering the aggressor — on security and defence, on cross-border projects such as Rail Baltica and Via Baltica, and in shaping our common position in the negotiations on the next 🇪🇺 budget. Let’s stay strong and support each other in good times and difficult ones. We are Baltic brothers! 🇱🇻🇱🇹

Thank you, @GitanasNauseda. It is a victory, but at the same time, it comes with a tremendous responsibility to the people of Latvia to deliver the change they have demanded. We have our hands full making it happen. I greatly value our friendship and the close cooperation between us and our countries. We must stand strong together — as Baltic nations and as 🇪🇺 Eastern Flank countries bordering the aggressor — on security and defence, on cross-border projects such as RailBaltica and Via Baltica, and in shaping our common position in the negotiations on the next 🇪🇺 budget. Let’s stay strong and support each other in good times and difficult ones. We are Baltic brothers! 🇱🇻🇱🇹

Thank you, Mindaugas. It is a victory, but at the same time, it comes with a tremendous responsibility to the people of Latvia to deliver the change they have demanded. We have our hands full making it happen. I greatly value our friendship and the close cooperation between us and our countries. We must stand strong together — as Baltic nations and as 🇪🇺 Eastern Flank countries bordering the aggressor — on security and defence, on cross-border projects such as Rail Baltica and Via Baltica, and in shaping our common position in the negotiations on the next 🇪🇺 budget. Let’s stay strong and support each other in good times and difficult ones. We are Baltic brothers! 🇱🇻🇪🇪

Thank you, @GitanasNauseda . It is a victory, but at the same time, it comes with a tremendous responsibility to the people of Latvia to deliver the change they have demanded. We have our hands full making it happen. I greatly value our friendship and the close cooperation between us and our countries. We must stand strong together — as Baltic nations and as 🇪🇺 Eastern Flank countries bordering the aggressor — on security and defence, on cross-border projects such as RailBaltica and Via Baltica, and in shaping our common position in the negotiations on the next 🇪🇺 budget. Let’s stay strong and support each other in good times and difficult ones. We are Baltic brothers! 🇱🇻🇪🇪

Thank you, Gitanas. It is a victory, but at the same time, it comes with a tremendous responsibility to the people of Latvia to deliver the change they have demanded. We have our hands full making it happen. I greatly value our friendship and the close cooperation between us and our countries. We must stand strong together — as Baltic nations and as 🇪🇺 Eastern Flank countries bordering the aggressor — on security and defence, on cross-border projects such as Rail Baltica and Via Baltica, and in shaping our common position in the negotiations on the next 🇪🇺 budget. Let’s stay strong and support each other in good times and difficult ones. We are Baltic brothers! 🇱🇻🇪🇪

Thank you, @KristenMichalPM . It is a victory, but at the same time, it comes with a tremendous responsibility to the people of Latvia to deliver the change they have demanded. We have our hands full making it happen. I greatly value our friendship and the close cooperation between us and our countries. We must stand strong together — as Baltic nations and as 🇪🇺 Eastern Flank countries bordering the aggressor — on security and defence, on cross-border projects such as Rail Baltica and Via Baltica, and in shaping our common position in the negotiations on the next 🇪🇺 budget. Let’s stay strong and support each other in good times and difficult ones. We are Baltic brothers! 🇱🇻🇪🇪

Thank you, Kristen. It is a victory, but at the same time, it comes with a tremendous responsibility to the people of Latvia to deliver the change they have demanded. We have our hands full making it happen. I greatly value our friendship and the close cooperation between us and our countries. We must stand strong together — as Baltic nations and as 🇪🇺 Eastern Flank countries bordering the aggressor — on security and defence, on cross-border projects such as Rail Baltica and Via Baltica, and in shaping our common position in the negotiations on the next 🇪🇺 budget. Let’s stay strong and support each other in good times and difficult ones. We are Baltic brothers! 🇱🇻🇪🇪

The ABC of politics is that it is hardest to agree with your own. I have experienced this with big spoons over the last 4 months too. Our (FinMin) new municipal equalization mechanism, which was one of the top 3 priorities, was effectively frozen by our own. Better not talk about money at all. For some reason, some imagine that the FinMin has a separate box of money ... for their own. But there is no box here at all. Therefore, I feel a bit like in the trenches, where friendly fire hits no less often than enemy fire. The front is in father's yard😁 It will be fine and as usual👌

I support. I wonder what ZZS will say about that now... :) https://t.co/slk0uXOmhd

Yes, that is one of the points of the plan.

There is no drama here. I have a good relationship with Česlavs, we have discussed education a lot. Mostly on the same wavelength. At the time he was also an excellent principal at the school where the children go, all due respect. What I saw in the budget expenditure review group is a separate topic. The control of how funding is used is below any criticism. And when all ministries buckled down and brought savings, when defense spending needed to be raised to 5%, the Ministry of Education and Science put its feet up on the table and got a free pass. That is not good, not good at all.

It is structured into sections. There are reforms (merging institutions with overlapping functions, for example), then there are 'topics', essentially cutting functions or reducing funding, and also a tax section — how much can be gained from changing tax rates. A full menu, like in a restaurant. What actually comes of it depends very much on the cooks. Just like in a restaurant.

That is for several reasons. Budget revenues are not just taxes; they also include so-called foreign aid, i.e. EU funds. They are disproportionately large this year, which is why budget revenues have grown by 10%, although taxes are growing basically in line with inflation (2% real growth, 3-4% inflation, around 5.5% in total). Well, and in the next 4 years, the theft from the second pension pillar (1% of the social tax) ends, as does the bank windfall tax (solidarity payment).