Healthcare and welfare are not among this year’s budget’s three top priorities. There is no additional funding to set aside, said Minister of Finances Arvils Ašeradens in an interview to LTV programme Rīta panorāms on Friday, the 6th of January.
However, it is possible to find funding to stabilise these sectors by reviewing taxes in the second half of the year. According to the minister, the government is hard at work on this year’s budget project, which focuses
on security, economic transformation and reduction of consequences of inflation.
When asked where healthcare is on the list of priorities, Ašeradens said it is on an appropriately high position. At the same time, however, the politician said healthcare and welfare are not sufficiently financed. Nevertheless, the coalition has agreed to perform tax revision in the second half of 2023. The government will look at ways to help stabilise these sectors.
The ongoing budget planning talks were described by the politician as constructive and relatively calm. When asked about budget deficit, Ašeradens said there is no reason to worry, because reviews of general government expenditures usually help find additional revenue worth several million euros. For example, last year’s additional revenue may have been generated by unexpectedly high inflation.
«In any case I want to say we have enough finances to cover the deficit this year. We shouldn’t worry about that,» said the minister.
When asked if the country has plans to continue compensating increasing prices of energy resources, Ašeradenss said the government is prepared to do this if necessary. But support is going down. Efforts are put into providing this support primarily for the groups of residents that need this support the most.
It is planned for the state budget project to be submitted to the Saeima on the 9th of February.
Also read: Inflation causes tax revenue grow more rapidly than budget expenditures in Latvia