According to the trade unions, a number of good works have been done in matters of the state budget, including additional funding for the internal affairs sector, railway infrastructure, and a compromise has been reached with the Latvian Education and Science Workers’ Union (LIZDA) regarding the increase in wages for educators.
However, the necessary 153 million euros for health care, which was the result of a compromise agreement in the industry’s strategic council, have not been found in the 2025 state budget. The association emphasizes that instead of this funding, only 24.9 million euros have been allocated, which will mainly apply to reimbursable medicines and oncology.
During the meeting, both trade unions and employers emphasized that health and education should be the state’s priority along with safety. More funding is urgently needed for healthcare, as indicated by the European Commission (EC) and the Organization for Economic Co-operation and Development (OECD). Now, a positive solution to the issue is still possible in the Saeima, says LBAS.
According to LBAS, the Minister of Finance Arvils Asheradens (JV) in the presentation of the 2025 state budget report indicated several sources of reduction of expenses in order to ensure the financing of priority measures of the budget. It was possible to reduce expenses by limiting the monthly salary increase for elected officials and officials appointed by the Saeima, reducing the expenses of ministries and other central institutions, which provides an additional 52.6 million euros in the budget. Revision of general budget and special budget expenses will bring an additional 51.3 million euros, while corrections in general government expenses and contributions to the EU budget will save 40.7 million euros. FM shows that it has been possible to reduce expenses in the amount of 330.7 million euros.
During the meeting, an agreement was reached, which foresees considering the possibilities of reducing public sector expenses by another 5% next year. Such a proposal was advanced by the Confederation of Latvian Employers (LDDK), which LBAS also conceptually agrees with, at the same time emphasizing that the reduction of expenses should not affect employees working in the public sector. salaries and their increase.
During the LBAS meeting, several proposals were made for the further addition of budget funds, for example, that in Estonia the government plans to sell carbon dioxide quotas worth 402.6 million euros and has included this amount in the four-year budget. Among them, 200 million euros were directed to the construction of “Rail Baltica”, and 75 million to the construction of the depot. At the same time, almost 130 million euros remained for the realization of other priorities. LBAS urged the Latvian government to act similarly.
Also, LBAS repeatedly suggested that the defense expenditure part should not be attributed to the budget deficit, for example air defense systems, thus making it easier for Latvia to comply with the fiscal structural guidelines of the EC. In order to do this, it is necessary to reach an agreement with the EC. Taking into account that currently the EC is still being formed, such an agreement would probably not be expected starting from 2025, but according to LBAS, an agreement could be reached starting from 2026.
Also, LBAS pointed out the possibility of using financing from the European Structural Funds to cover the attraction of funding missing in the budget to sectors where it is currently lacking.
LIZDA previously reached an agreement on the creation of a working group, the purpose of which is to develop a salary increase schedule for all groups of teachers in the coming years. However, during the meeting, LBAS failed to reach a decision on strengthening the agreed goals in the minutes of the National Tripartite Cooperation Council.
It has already been reported that the meeting of the National Tripartite Cooperation Council on Monday discussed the current issues regarding the next year’s state budget. Prime Minister Evika Siliņa (JV) said that the government is not ready to reduce spending on the defense sector, but at the same time will look at how the sector spends these allocated funds.
The Prime Minister also stated at the meeting that next year, opportunities will be sought to reduce public administration spending by 5%. She indicated that other options for reducing expenses will also be sought.
It is also reported that several conditions have been set for the formation of the state budget – fiscal sustainability in budget planning is ensured, funding has been found for priority measures related to national security, as well as municipalities are offered to fully compensate for the impact of labor tax changes.
The draft budget foresees additional funding for priority measures related to national security, ensuring the enforcement of the Constitutional Court judgment and laws, independent institutions and measures related to tax policy changes.
In general, it is planned to finance priorities for 2025 in the amount of 474.4 million euros, for 2026 in the amount of 475.2 million euros, for 2027 in the amount of 487.8 million and for 2028 in the amount of 428.9 million euros. 60% of the total funding of the 2025 priority measures has been allocated to national security priorities.
Source: www.diena.lv
