Latvian Political Monitor

I have proposals in mind. What millions or 10 can be saved. By eliminating ministries, you transfer functions to another, the savings are only a small part of the administration staff. If you save at all. An example is the territorial reform, now there are fewer municipalities, fewer deputies and their salaries. But the total number of employees in municipal administration has grown. It can happen the same with ministries if you optimize inefficiently.

I agree that 'attempts to patch the system with linear budget cuts and loud slogans alone will fail.' In my opinion, the next coalition must have one specific iron law that stands above everything else. Automatically, by default, do not consider any proposals that require more money next year compared to this year. The opposite is to deny the 'zero budget' principle as such. Instead, it's 'just pile on more,' which has always been the case so far. If this one principle is followed, new initiatives will have to be funded from internal resources, streamline processes, eliminate the unnecessary. Only that way.

Today a valuable conversation with entrepreneurs working at @salduslv about business development in Latvia's regions, tax policy, current government work issues, and other important questions for the region and the country as a whole. https://t.co/GqqN1c9yQf

The municipal financing equalization model, the possibility for municipalities to more effectively finance their development projects, and many other issues were discussed today with the leadership of the @salduslv council – @MarisZusts and his colleagues. Thanks for the meeting and productive conversation! https://t.co/gNfbeFf5JI

I personally don't have such conviction. But here it is - as long as one lends and the other borrows, what's my part? Even at 1000%.

@lifesound22 @E_Stendzenieks There it's like through the clouds (because planes also fly in clouds). At first they publicly said that 225 million is needed, now they will borrow up to 257, I've heard even larger sums. The rich don't count money 🤡

@LaSharikovcousi @E_Stendzenieks Won't recover, of course. The money invested earlier has long been burned. I suggest an experiment. Take a 50 euro banknote and throw it into the fire. No, better a 200 euro banknote. If you haven't learned elementary school material, then you have to learn it this way.

@E_Stendzenieks Let them borrow. That is not Latvian taxpayers' money. Principally, the only thing that interests me is, I quote: 'The planned interim financing does not depend on Latvia's state financial participation'.

@VRudzitis Well, that's also the focus question. Sector management. Ministerial responsibility. Ministers change, but the approach doesn't. They shout in the public space with the usual 'give new money' slogan, but it's like a black hole. And experts have been saying this for a long time - without internal reforms, money won't solve anything.

@sidsloth261949 Half of society works and earns money. The other half would accordingly disagree with you.

I'll illustrate with the same health issue. We are one of the poorest EU countries. From our small GDP we collect about 34.9% in taxes, which is also a lower percentage than the EU average. Put both together - the total tax money is relatively low, of course. But. That medical equipment costs the same as elsewhere. Salaries? Top doctors earn well, otherwise they'll leave. Nurses - well, they'll also leave with a certain difference, and many do leave. The cost of the service here is cheaper than in rich countries, but not so cheap that we could finance much from the meager tax sum. In any sphere. Education, health included. And the recently added +3% for defense actually empties the room. In the Baltics, 7% of GDP is spent on health, the EU average is 10%. That difference is those 3%. With a poor country, such are the the benefits, the state-paid services. Poor. Want richer and better? It simply won come from public money. This is not about imagined notions of fairness or offense, but about means.

@GalvGatis Large companies are being swept into the budget. 90% of profits go to the budget. That was a capitulating decision, because there is nothing left to take.

Practically everyone expects the government to save everyone. That it is even capable of doing so. That's why we must cry as loudly as possible. Surely they'll give money. Every day I see delegations of criers. But there is an objective thing. There really is no money anymore. And there won't be, as before and until now, when they gave. Because there simply is no money anymore. Everything is allocated and spent. For example, today I sat in a meeting where they cried and gave speeches. That if they don't give more, then we'll shut down health care. Then let survival laws win! Trade union and other representatives at Brīvības 72 held a meeting. Heartbreaking speeches. When the speeches ended, Hosams said that that's why we are here, to solve. I said this - if we continue to cry, then survival laws will really win. The criers will leave first. Next year they need 729 million for the health sector, taking it away from others! Yes, they probably meant to liquidate the education sector. That's the 'other'. There's a billion and 200 million a year. Schools, sports, liquidate everything. I listened to the speeches, turned on the calculator, divided 700 million by the number of workers. And I offered. Each crier at the table (they have normal to very good salaries) - we pull from our own pockets and pool into policies. About 80 euros a month. And in general the only solution is to finance the shortfall ourselves, because state reserves are exhausted. Completely now. The tax base has long been overspent, we have to borrow. After my remark I was forced to leave the criers, because I had to go to another meeting, where they discussed something more important - the funeral date. There the money has also run out, the coma apparatus is working. As a society we want 2 things. Low taxes and state-paid services as in paradise. Well, socialism doesn't work, it doesn't. But only a few seem to understand that anyway. In vain have I been telling this here for years.

Business organizations have always been a good partner for the Ministry of Finance and the government as a whole. Today a discussion with @LTRK_uznemeji on budget issues. The business community's call not to create ever new expenditures for the state during the pre-election period is important. https://t.co/FVf4uCHfXG

How does collective stupidity work? Now and then. Unchanged. Back then it was like this. Once the Police Academy was liquidated. As a result, investigators no longer received further education in pre-trial investigation on current challenges. The State Audit Office warned for years - Latvia's pre-trial investigation is being sunk by investigators' lack of professional qualifications and practical skills. Then came informative reports, the Kariņš government listened to recommendations, added prosecutors' wishes and created ... actually another legal education program, starting with ancient Greek philosophers and going through a full jurisprudence course. The state made a program called 'Pre-trial Investigation'. What does it teach? Philosophy of law and sociology. History of Latvian law. Constitutional law. Private law. Commercial law. Resolution of private law disputes. International and EU law. Nothing that addresses the problems the course was created for. Then, amid the construction cartel winds, they added that a training building worth 20 million must be built from non-existent money. As a result of institutional stupidity, they created a product, a course that did not solve the initial goal. Neither do investigators have time to attend a full master's program during working hours, nor does it solve the initial problem. Of 15 students, only 2 graduated. Now? Now they are advancing the Sports Fund. The initial idea was to attract private money to sports. Nice! Now? The initial idea has long disappeared. The idea in the Saeima has transformed away from the goal (there will be no private money), away from any sense. There was also such a point - to give money to sports so that they don't ask every year from funds for unforeseen circumstances (LNG). That too has disappeared. In fact, professional sports funding will come under the Olympic Committee. The fat cats will get more money, but grassroots and youth sports remain out in the cold. Meanwhile, requests from LNG to fund various bridges have not disappeared, they come to the Finance Ministry every week. I've long wanted to vomit. The Sports Fund freak continues its progress in the Saeima. Institutional stupidity.

Some kind of madness… https://t.co/1EFRqooCx6

As we discussed with employers today. We have a bunch of laws and regulations that require allocating funding to various sectors as a certain % of GDP. And there, when adding up, about one billion euros is missing. For a long time. That is on top of the already existing deficit (borrowed money) of 2 billion per year. It will never be fulfilled, even theoretically impossible. Such regulations should be thrown in the trash. There is a list.