One of the largest taxpayers in Latgale and specifically in Daugavpils is 'Latvijas maiznieks'. On a Latvian scale, every third 'loaf' comes from Daugavpils. And right now they are investing another 15 million in expanding the plant. Every plant is a valuable contribution to the Latvian economy! However, there we almost had to rewrite Elksniņš's state finances. At minus 20 degrees you would sign more than that. That was the option he mentioned...😅
@ruuzis@snurosnare@guntarsv I think it's a regional effect. But overall, exports are the only thing that makes us wealthier. Everything else is redistribution of existing wealth. Even though in reports that redistribution shows better numbers. If there is no export, there will be nothing to redistribute.
@poznaks@snurosnare@guntarsv Good argument, I hadn't thought about that. Of course, we can't easily calculate how much local consumption money per person the Regulation frees up, but intuitively it's clear it's not zero. I just intuitively also expected an advantage in taxes - on average 2k per year per person for such a company seems little.
@ruuzis@snurosnare@guntarsv The difference is that Depo redistributes local money. Moreover, selling imported goods for which money is counted away. Regula basically exports. So it brings money into Latvia from abroad. Although Regula pays less in direct taxes, it overall makes us wealthier more than Depo.
@poznaks@snurosnare@guntarsv But somehow strange that Depo one employee contributes more to the budget. Obviously I don't understand something or can't at the moment, but those numbers are what they are.
We continue interviews with prime minister candidates. Since becoming prime minister, Andris Kulbergs has gained great popularity. In the interview, he talks about saving money, a coalition with Šlesers, a conflict with NGOs, and the possibility of continuing his daily video posts.
🔗 https://t.co/uSSAtX8YbQ
What is it like to be prime minister before the Saeima elections, what is happening to our state administration, and what will happen if we continue to grow the external debt – watch political scientist Filips Rajevskis' conversation with Prime Minister Andris Kulbergs (“United List”) on the portal https://t.co/WM2sIldVYi! https://t.co/yjIJ3Is2Qj
Was this already this year, or did I miss something??? A. Kulbergs said that in February he would come out with a serious plan, a concrete example, a clear calculation and an assessment that Latvia has not had for 35 years - how to earn seven billion euros. https://t.co/4vhjgGVetA via @nralv
What is it like to be prime minister before the Saeima elections, what is happening to our state administration, and what will happen if we continue to grow the external debt – watch political scientist Filips Rajevskis' conversation with Prime Minister Andris Kulbergs (“United List”) on the portal https://t.co/WM2sIldVYi! https://t.co/yjIJ3Is2Qj
⚠️ President Rinkēvičs did NOT convene the extraordinary Cabinet of Ministers meeting requested by our LPV.
Prime Minister Kulbergs also did NOT convene an extraordinary government meeting.
BUT TODAY THE Saeima DID ADOPT A DECISION - to reduce the excise tax on fuel from 1 October until the end of the year. Expected impact on price - approximately 8 cents per litre.
QUESTION - WILL 8 CENTS PER LITRE CHANGE ANYTHING IN YOUR LIFE?
P.S. Let me remind you - we, LATVIA FIRST, addressed President Edgars Rinkēvičs with a call to convene an extraordinary Cabinet of Ministers meeting, so that the president, Prime Minister Kulbergs and ministers would sit at one table and decide on a much more substantial solution - abolishing the excise tax or reducing VAT at least until the end of the year.
Then at the end of the year we look at what is happening on the world market and decide further.
How to balance the state budget if expenses keep growing?
On TV24 program “Pre-election debates. Fight for Latvia”, Prime Minister Andris Kulbergs raised the question of the state budget deficit and growing expenses.
In the discussion, Finance Minister Arvils Ašeradens stated that he disagrees with such an assessment, emphasizing the importance of economic growth and defense funding.
Andris Kulbergs, in turn, raised the question of how the state plans to balance growing expenses and budget capabilities.
Watch the discussion fragment and the full debate recording:
https://t.co/JgFBb5QjDz#APVIENOTAISSARAKSTS#MumsIrRisinājums#KulbergsIrRisinājums#LatvijaMumsIrRisinājums#7Saraksts#SaeimasVēlēšanas2026#TV24
A new reality could be here as soon as next week. Diesel fuel could cost close to €3.00/l due to this US diesel export ban. That means a huge blow to the economy and exports. Now the Prime Minister @AndrisKulbergs, as a true transport and auto sector expert, could play a leading role in reducing the comprehensive EU minimum excise level. Because such a price level will mean that transport companies will go bankrupt, many regional transport services will not take place, etc. Is anything already being done in this area, @MGruskevics?
Today there was hysteria in the Saeima Budget Committee. We showed the true state of the budget.
This follows the Kübler-Ross model (described in the book 'On Death and Dying'). The first stage is denial. They denied the data, refused to believe it, and started shouting.
What is it about? You see, the projected budget for the coming years has been deep in the red for a long time. This is publicly known. More than a billion needs to be cut, but mainly by 2030. That is far away. But that is only half the trouble. There are also additional decisions adopted for over 2 billion that need to be cut on top of that.
And they have been promised, but money in the budget will be sought only after the elections (because it is a political choice and not for this Saeima). There you have it — so what will we take away? Only the new Saeima may decide that. Logically.
And together it is apocalyptic — billions are not millions and not even hundreds. It means limiting public expenditure. Which ones? Well, that will be the choice of the next coalition/Saeima. We showed the apocalyptic hole in the wallet that has been built up over many years.
And that is not all. These deficits are if we continue borrowing as before. Up to the brim.
To achieve a deficit-free budget, 9 billion need to be cut.
You could even dismiss all ministries and shut the state down, and it still would not be enough.
So there you have it. Ten years of blatherers in power. What did you expect?
Today there was hysteria in the Saeima Budget Committee. We showed the true state of the budget.
This follows the Kübler-Ross model (described in the book 'On Death and Dying'). The first stage is denial. They denied the data, refused to believe it, and started shouting.
What is it about? You see, the projected budget for the coming years has been deep in the red for a long time. This is publicly known. More than a billion needs to be cut, but mainly by 2030. That is far away. But that is only half the trouble. There are also additional decisions adopted for over 2 billion that need to be cut on top of that.
And they have been promised, but money in the budget will be sought only after the elections (because it is a political choice and not for this Saeima). There you have it — so what will we take away? Only the new Saeima may decide that. Logically.
And together it is apocalyptic — billions are not millions and not even hundreds. It means limiting public expenditure. Which ones? Well, that will be the choice of the next coalition/Saeima. We showed the apocalyptic hole in the wallet that has been built up over many years.
And that is not all. These deficits are if we continue borrowing as before. Up to the brim.
To achieve a deficit-free budget, 9 billion need to be cut.
You could even dismiss all ministries and shut the state down, and it still would not be enough.
So there you have it. Ten years of blatherers in power. What did you expect?
APVIENOTAIS SARAKSTS - Latvijas Zaļā partija, Latvijas Reģionu Apvienība, Liepājas partija · Ekonomists (FM ministra birojs)
Reply
Any restriction of expenditure will, of course, affect current GDP. GDP already reflects current spending.
Example from the Kalvītis floor-it period. Money flowed in streams, on credit. It was a good party. GDP grew at great cost. Nice? And then a severe hangover. I doubt that this scenario needs to be repeated. In my opinion.
Of course, if borrowed money is not pumped into consumption, it will have a negative impact on today's spending (GDP). How much? Economists are trying to forecast it. But it will not be 1:1, because our spending also includes many imported goods. Purchasing imported goods has virtually no effect on GDP. Well, then you can look at scenarios. Whatever they may be. And then estimate the negative impact on GDP.
The Finance Minister announced his choice this morning on the Morning News. The medium scenario.
Why? Well, because right now it's not realistic to fill the hole that has arisen by adding an additional 3% of GDP for defense. And no country can do that. Absolutely none. So what then?
Well, one option would be at least not to use the allowed increase in borrowing for defense plus 1.5% of GDP, but to try to keep the deficit at the old 3%. Which is also very difficult to do. In a normalized (not war preparation) budget, that would be a balanced budget. We don't have a normal situation. Defense has to be financed at all costs, and then some deficit inevitably arises. But that has to be accepted.
But what the new coalition or even any specific party will decide - we'll see, there are still many faints and debates ahead.