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Friday, 26.04.2024, 11:04
Latvian Saeima passes Long-term Stabilization Reserve Law
BC, Riga, 24.04.2014.
Print version
Print versionThe Saeima in Latvia passed the Long-term Stabilization Reserve Law in the final reading today, the law stipulates that the country will make savings during "good years" in order to use them in case of economic recession.
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The law follows a principle that during the "good years" in economy, the country forms a budget surplus. The surplus is accumulated to be used in case of economic downturn, LETA was informed by the parliament's press office.
The long-term stabilization reserve will be made up of surplus in the master budget, income from reserve asset management, and others.
The funds thus saved will be used to cover the financial deficit in the country's budget, and to reduce or prevent fiscal risks. These savings will also be used to temporary finance the State Treasury in situations when no other financial sources are available.
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