@guntarsv@Kuskis Before reducing what is used by the population, the whole “budget menu” should be opened: which expenditures are truly necessary for the state and which can be reviewed? Including state funding for organizations such as PROVIDUS and hundreds of others.
Yes, the menu has several sections. One of them is about tax policy. The IMF, for example, doesn't believe that you can cut expenses. They offer only that. In the Ministry of Finance, we put several sections in the menu - expenditure reduction, reforms (merging institutions), and also a tax section. Then all of that can be combined in different ways like Lego bricks. However, a deficit-free budget cannot be achieved without taxes. That is because we spend on defense in something like a half-war mode. And in other countries it is exactly the same, the same problem with the budget. My idea is to aim for a 'normalized deficit-free budget'. If you don't take into account the increase in defense spending from 2% to 5%, and accept those 3% as above normal and don't compensate for them, then you can achieve a normalized deficit-free budget. As for taxes, they are relatively low compared to GDP. And that is also why, for example, the health sector cannot be funded as much as we want (currently below the OECD average relative to GDP). So everything is about desires. If you want to fund education, health, etc. as much as in OECD countries, then the tax burden must be correspondingly higher. So what do we want? We have to choose. In the coming years, the tax burden, by the way, with unchanged policy, will continue to decline relative to GDP, which also needs to be taken into account.
We have been working on the budget measures for all these 4 months. On the table before the Prime Minister and a very narrow circle lies a longish thing that I call the 'bloody list'. Because all of these are difficult/unpopular decisions. Otherwise the budget cannot be put in order, since the popular slogans about optimising officials and individual siphons and Jonīte's handbags are mathematically cents (compared with the budget deficit).
The most direct analogy is Milei. Publicly he went with a saw and abolished ministries (popular), but in fact he eliminated the deficit by limiting public spending (free services) by USD 800 per inhabitant (very unpopular). We have a similar choice; no other exists, even though 99.99% of the public does not understand that.
It is not my job to carry these proposals to the people; we only gave the menu (restaurant menu), the main thing will be the resolve to decide politically, in the coalition, and that requires courage. Until the elections they promised candies; that is not hard. Now there will or will not be a moment of truth, because reforms have only one year. After that, elections again, the circus will resume.
That is why the ministry was silent all this time (they reproached us for 'doing nothing'). Only what the Prime Minister now takes upon himself to do will be published. Otherwise it does not work; the Finance Ministry is just bookkeepers showing what can be done at all. Restaurant menu. Others simply do not understand. For example, ministries can also be abolished, but in money terms it is only a crust from a loaf of bread, a few cents out of 10 euros.
Have a nice day!
Just like when I voted for @guntarsv in the Riga municipal elections, I am also at peace with my choice now😀. I believe that my personal choice is a catalyst for a hopeful way forward overall, regardless of the result of my favourites in the particular competitions. My sporting side, understandably, would have liked MMN to enter the Saeima. But — I want a good long-term perspective for Latvia and myself, and with @partijaMMN that is being created. P.s. Behind Kulbergs is Vītols!👌💪
APVIENOTAIS SARAKSTS - Latvijas Zaļā partija, Latvijas Reģionu Apvienība, Liepājas partija · Ekonomists (FM ministra birojs)
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Yes, the menu has several sections. One of them is about tax policy. The IMF, for example, doesn't believe that you can cut expenses. They offer only that. In the Ministry of Finance, we put several sections in the menu - expenditure reduction, reforms (merging institutions), and also a tax section. Then all of that can be combined in different ways like Lego bricks. However, a deficit-free budget cannot be achieved without taxes. That is because we spend on defense in something like a half-war mode. And in other countries it is exactly the same, the same problem with the budget. My idea is to aim for a 'normalized deficit-free budget'. If you don't take into account the increase in defense spending from 2% to 5%, and accept those 3% as above normal and don't compensate for them, then you can achieve a normalized deficit-free budget. As for taxes, they are relatively low compared to GDP. And that is also why, for example, the health sector cannot be funded as much as we want (currently below the OECD average relative to GDP). So everything is about desires. If you want to fund education, health, etc. as much as in OECD countries, then the tax burden must be correspondingly higher. So what do we want? We have to choose. In the coming years, the tax burden, by the way, with unchanged policy, will continue to decline relative to GDP, which also needs to be taken into account.
@guntarsv@Kuskis I wonder, does that menu also include taxes? The OECD recommended not only reducing expenditures but also raising the tax burden by 2.4% of GDP - property, capital, etc. Without even touching VAT. And we don't have the Argentina situation to cut pensions, subsidies for public transport, etc. with a knife in living flesh.
Of course, you can use Milei/ARG numbers to cover up the unwillingness to abolish ministries, saying that the real budget deficit is erased precisely by cutting public spending.
BUT.
The symbolic aspect is no less important here — if you, guys, want the people to believe you, then the 4 superfluous ministries MUST be abolished.
And that must be done at the first government meeting.
Together with the SIF and the MAF.
It is like toppling Okupeklis in Pārdaugava — symbolism is just as important, if not more important.
Because in 4 years this state cannot be put in order, and you do want to be re-elected, right?
So you must not wimp out, ok?
@guntarsv@Kuskis If the "sifi and jonītes bags" are not touched, it will be impossible to convince people to accept that "(free services) for 800 USD per inhabitant" are being taken away.
APVIENOTAIS SARAKSTS - Latvijas Zaļā partija, Latvijas Reģionu Apvienība, Liepājas partija · Ekonomists (FM ministra birojs)
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We have been working on the budget measures for all these 4 months. On the table before the Prime Minister and a very narrow circle lies a longish thing that I call the 'bloody list'. Because all of these are difficult/unpopular decisions. Otherwise the budget cannot be put in order, since the popular slogans about optimising officials and individual siphons and Jonīte's handbags are mathematically cents (compared with the budget deficit).
The most direct analogy is Milei. Publicly he went with a saw and abolished ministries (popular), but in fact he eliminated the deficit by limiting public spending (free services) by USD 800 per inhabitant (very unpopular). We have a similar choice; no other exists, even though 99.99% of the public does not understand that.
It is not my job to carry these proposals to the people; we only gave the menu (restaurant menu), the main thing will be the resolve to decide politically, in the coalition, and that requires courage. Until the elections they promised candies; that is not hard. Now there will or will not be a moment of truth, because reforms have only one year. After that, elections again, the circus will resume.
That is why the ministry was silent all this time (they reproached us for 'doing nothing'). Only what the Prime Minister now takes upon himself to do will be published. Otherwise it does not work; the Finance Ministry is just bookkeepers showing what can be done at all. Restaurant menu. Others simply do not understand. For example, ministries can also be abolished, but in money terms it is only a crust from a loaf of bread, a few cents out of 10 euros.
Have a nice day!
The @guntarsv who is usually active on X is silent. I understand that the mandate for Milei-style reforms has been given, but it will be very difficult to implement it with the AS hockey players, the green, moldy ones, and the wind-city residents. @guntarsv, sharpen the saw.
This was an excellent segment of life's school. Intense, rapid, and also painful, seeing the result. I was and am ready to stand and fall for Latvia, despite being crossed out🫡
Many thanks to the thousands who gave their vote to @Apvienotais_ 🤝 https://t.co/rR1fIxVSrA
APVIENOTAIS SARAKSTS - Latvijas Zaļā partija, Latvijas Reģionu Apvienība, Liepājas partija · Biedrības 'Latvijas restarts' biedrs
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This was an excellent segment of life's school. Intense, rapid, and also painful, seeing the result. I was and am ready to stand and fall for Latvia, despite being crossed out🫡
Many thanks to the thousands who gave their vote to @Apvienotais_ 🤝 https://t.co/rR1fIxVSrA
APVIENOTAIS SARAKSTS - Latvijas Zaļā partija, Latvijas Reģionu Apvienība, Liepājas partija · Saeimas deputāts
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I reckon that the Saeima elections should be held in spring or early summer. Once every 20 years they would coincide with the European Parliament elections. But that is not the main thing.
- the budget could be put together in time
- deputies would also have the opportunity to sort out their private affairs over the summer and prepare better for the Saeima session. https://t.co/seqG968gwQ
If we look at Article 11 of the Constitution as something that could be amended to prevent today's failures with the ballots handed over for safekeeping, then I think it is worth discussing why we even have elections in October. Yes, a century ago everyone needed to finish the fieldwork, but now every four years we face a serious risk of starting the next year with a "technical budget", because politicians cannot piece together a coalition.
Constitution:
"11. Saeima elections shall be held on the first Saturday of October."
The results of the voter survey of the party "New Unity" (JV) are devastating, former Prime Minister and former JV party member Krišjānis Kariņš told LETA.
https://t.co/5Y0vECOTTd
This from @POLITICOEurope is not ok. By analogy, NA would be radical right and Pro communists. The absurdity of exaggerated labeling and incompetence. https://t.co/Ihyd9m5SuL
APVIENOTAIS SARAKSTS - Latvijas Zaļā partija, Latvijas Reģionu Apvienība, Liepājas partija · Biedrības 'Latvijas restarts' biedrs
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@normundsbergs@Gaumigais_joks Photo taken today. My grandma, soon 90. Behind her is the house where she was born and lived her whole life. Russian soldiers came in to take away her father, a "kulak". They stole oak wardrobes, horses, and carts. Lucky she wasn't raped. Those were the Russian occupiers. Their remnants are running for office today. Here we are. https://t.co/bYXymwhpzF