Saeima deputy and President of the Auto Association, Andris Kulbergs, expressed grave concerns during the TV24 program “Ziņu TOP”, warning that the Latvian government is no longer functioning effectively and that the state budget may be on the brink of collapse.
According to Kulbergs, Latvia is facing a budget deficit of approximately 600 million euros, and to cover the state’s expenditures, the government may resort to raising taxes or selling off state-owned assets.
“I believe the only solution is a new government.
The current one is incapable of functioning, and the assumptions in place are unworkable — I cannot imagine how a budget can be drafted in this situation, where we face a 600 euros million deficit, yet are unable to find even 150 million euros in savings,” Kulbergs criticized.
He also pointed to several major, unresolved financial burdens including airBaltic, Rail Baltica, and Latvijas Dzelzceļš, describing them as “heavy stones hanging over our heads.” All of these sectors, Kulbergs stressed, are mired in serious financial trouble.
Latvia technically still has the ability to borrow up to 5.5 billion euros until December 2028, Kulbergs noted. However, he warned that continued increases in borrowing could overwhelm the economy, potentially exceeding its ability to repay the debt.
“I’m very skeptical about the current situation,” he concluded.
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