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To some extent, this is an unusual budget because for the first time it was submitted to the Saeima along with a three-year budget framework, said Jānis Reirs, Chairman of the Budget and Finance (Taxation) Committee, on Tuesday, 9 October, as consideration of budget began in the Saeima. Prime Minister Valdis Dombrovskis also took part in the committee meeting.

“During the budget consideration, we are planning to arrange meetings with representatives from line ministries and independent institutions in order to hear their opinions on the estimated budget allocations. Moreover, to ensure faster and more efficient consideration, we have prepared a draft resolution of the Saeima on the procedure for formatting and submitting proposals for amendments to the draft budget for the second reading,” reported the Chairman of the Committee.

“This year for the first time the Saeima received the annual draft state budget along with a draft three-year budget framework, which from now on will enable us to have actual medium-term budget planning. This attests to our country’s financial independence because for the first time in the past four years it was not drafted under the supervision of international lenders. However, in order to avoid overpayment of interest rates for refinancing the international loan, we need strict financial discipline,” stressed Prime Minister Valdis Dombrovskis as he addressed the MPs at the committee meeting today.

The priorities of the next year’s state budget are to develop the economy, improve the demographic situation and raise salaries of certain groups of public sector employees. Some financing is also earmarked for preparing for several major events such as Latvia’s presidency of the Council of the European Union in 2015, Riga's becoming the European Capital of Culture in 2014, the National Song and Dance Festival, the Baltic Student Song and Dance Festival Gaudeamus and the Song and Dance Festival of Schoolchildren.

In terms of improving the demographic situation, it is planned to allocate funds for increasing parents’ maternity and paternity benefits, as well as for doubling mandatory social insurance contributions made by the state for those who take care of a child. It is also planned to introduce additional family allowances for baby-sitting, to finance the Mother and Child Health Programme, to provide state support for artificial insemination and to implement other measures.

It is planned to raise salaries of teachers working at institutions of general and cultural education, police officers, fire fighters, border guards, as well as employees of the Prison Administration, courts and social care centres.
It is planned that in 2013, the consolidated budget revenues will be in the amount of LVL 4.7 billion, and expenditures in the amount of LVL 4.8 billion. Next year’s budget deficit is estimated at 1.4% of GDP, said representatives from the Ministry of Finance.

“The Budget Committee will devote several meetings to thorough assessment of the draft state budget for 2013, the draft three-year budget framework and 30 budget-related draft laws. The Saeima plans to consider the draft state budget in the first reading on 22 October. We will suggest 25 October as the deadline for submitting proposals for amendments for the second reading, and on 15 November the Saeima plans to adopt the budget in the final reading,” stated Jānis Reirs, Committee Chairman.

Saeima Press Service