Budget, Financial Services, Latvia

Einars Repse.

It is clear that the usual principles for structuring the budget can no longer be used, a new approach is necessary, stressed LETA Repse.

Extensive structural reforms will be carried out to achieve a non-deficit budget, a political decision will have to be made which functions the state will provide funds for from now on. Distribution of budget funds will only be considered after that, Repse explained.

"We will have to start structural reforms from scratch," said Repse.

According to Repse, ministries have already been assigned to draw up structural reform plans for their respective ministries, which will be considered by the government. Any specific decisions will be made at end-April or the beginning of May, and the budget should be submitted to Saeima at the beginning of June.

International lenders also approve of such a schedule, told LETA Repse.

In conclusion of the International Monetary Fund's technical assistance mission, a special seminar was organized for ministers and government officials today to discuss the launch of structural reforms.

Also today, Prime Minister Valdis Dombrovskis (New Era) and Repse had a meeting with Swedish Finance Minister Anders Borg.

After the meeting, both ministers told reporters that the meeting had been very constructive and that both sides understand the complicated situation in Latvia.