Latvian president calls state budget «rational attempt to balance desires and opportunities»

On Tuesday, the 21st of March, Latvia’s President Egils Levits promulgated the Saeima’s approved state budget for 2023. He said it is not perfect, but it does show an attempt to rationally balance the country’s capabilities, needs and desires.
In the statement published in the Latvian Herald, President Egils Levits stressed that the state budget for 2023 lists five priority directions – security, education, energy, competitiveness and quality of life, human and public health. This will be Latvia’s historically biggest budget yet.
The president said he is happy the Saeima and the government have managed to agree on priorities in the 2023 state budget. Levits called them important to Latvia’s development. These include balancing of the country’s domestic and external security funding and increasing funding for scientific operations, education and research.
The president also mentioned having received several requests to get involved in the government’s and various economic sectors’ debates regarding the main principles that govern budget development, as well as funding provided to different sectors of the economy.

He also received a request to not promulgate the state budget for 2023 and instead return it for a second reading.

«I would be unfair to pit teachers against doctors, police officers against pensioners, special needs people against Ukrainian refugees all to outline urgency for some specific section of the budget.

We all want to live in a better Latvia, and it is only through our shared efforts is it possible to achieve,» said the president.

According to him, the talks held by the government and representatives of various sectors and agreements indicate a mutual push toward a constructive and sustainable policy. Levits stressed that it is important for those agreements to be implemented by all involved sides.
Levits stressed the schedule outlined for the increase of teachers’ wages is ready, but the Cabinet of Ministers has yet to approve it.

He invited the government to not delay and implement the agreements reached with LIZDA last year.

At the same time, the president invited the trade union to be more understanding towards the government’s work and reconsider the planned strike.
According to the president, in the education sector, like any other sector, teachers’ wages is not the only topical problem. Levits stressed the priority should always be education quality and availability. He said only reasonable reforms, including the solution for the organisation of the school network. Then there would be reason to discuss the issue of funding.
Levits said healthcare organisations have voiced justified concerns that unpredictable and insufficient state funding and shortage of human resources puts at risk accessibility of healthcare services.

«I believe healthcare is one of the sectors that requires full clarity about its available budget over a longer period of time.

Here is where the suggestion for gradual increase of funding for healthcare from GDP is welcome. Defining an accurate volume of funding is the government’s direct duty and responsibility. At the same time, I believe we need to continue a professional discussion about the best possible funding model for healthcare,» said the president.
According to him, the government has all the opportunities to significantly improve communication with representatives of other sectors and trade unions to avoid misunderstandings.
The president also said the government is already working on the next year’s budget. Levits invites the government to keep in mind their experience and lessons learned from the development of the state budget for 2023.
According to the president, although the budget was approved at the start of march,
the Cabinet of Ministers and the Saeima have to carefully follow the budget’s implementation and perform measures to find funding for the sectors that may end up in a difficult situation.
Also read: Bank of Latvia governor says ongoing price rise cannot be attributed to the war