The president names the areas that should not suffer in case of budget belt-tightening

He admitted that if the state’s financial plans are not fulfilled and the economic situation makes it necessary to tighten the budget belts, it can be done both this year and next year, but the most important thing is not to suffer the mentioned priority areas.

Rinkēvičs also added that he was very unpleasantly surprised by his visit to the Latvian Ethnographic Open-Air Museum this week.

“There, to tell the truth, the basis of the national identity of the people, those stocks are in a simply insane situation. There has been no investment there for decades. And if something happens at one point, we will again hold our heads and moan about where we were for 30 years, when we did not allocate funds to protect those various types of 18th, 19th, early 20th century stocks,” said the country’s first person.

At the same time, he admitted that he does not know how to objectively review the entire field so that it does not happen that the one who shouts the loudest gets more money. Rinkēvičs believes that finding this balance is the competence of the responsible minister of each sector, and at the same time the president is aware that it is not easy.

Edgars Rinkevičs

President of Latvia

I know that you will never be able to give everything to everyone, but you have to try to understand at least in some planned order that there are some things that need to be done, and then, of course, some very new, beautiful, good things come.

He summarized that there is still an extremely large imbalance in various sectors in Latvia.

On the other hand, as recommendations for more successful attraction of investments, Rinkēvičs mentioned promoting lending and reducing bureaucracy, stressing that the latter does not require large financial investments at all.

As reported, this year the government’s budget deficit will increase significantly and reach 2.9% of gross domestic product (GDP), approaching the Maastricht limit of 3% of GDP, according to the Latvian Stability Program draft 2024-2028 prepared by the Ministry of Finance (FM). for the year, which was approved by the government on Tuesday.

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