Latvia is currently not considering a scenario of raising taxes, Finance Minister Arvils Ašeradens (New Unity) said on Thursday in an interview with Latvian Radio’s Krustpunktā.
The minister stressed that Latvia’s public debt level remains moderate and that there is still room before reaching the Maastricht criterion ceiling of 60% of GDP.
Ašeradens also noted that the European Commission has approved Latvia’s budget plans for the next three years, and Latvia was among 12 EU member states whose budgets were approved without significant objections.
The Ministry of Finance is now working on a four-year budget framework, with the main challenge being economic growth. According to Ašeradens, stronger growth is essential to avoid the need for additional borrowing.
“At this moment, we are not looking at raising taxes,” the finance minister emphasized, adding that the focus is instead on making the public sector more efficient and improving cost management.
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