Kučinskis: Finance Ministry could group budget cut proposals within two weeks

Latvia's Finance Ministry could have grouped its proposals for reducing the state budget within a week or two. Finance Minister Māris Kučinskis (AS) said this on the Latvian Television programme "Rīta panorāma". The proposals matter because they will shape next year's state budget at a time when the government is promoting austerity.

The minister stressed that it is important to carry out the budget austerity regime announced by Prime Minister Andris Kulbergs (AS). For this reason, the ministry is currently gathering information on various areas where the budget could be cut.

Budget adoption deadlines

Kučinskis acknowledged that next year's state budget could be adopted by the end of this year. However, that would be very rushed, and it might not be possible to include the reforms needed for budget changes in the coming year.

Under the law, in a year of Saeima (parliament) elections, the draft state budget law and the accompanying package of budget bills must be submitted to the Saeima no later than four months after the newly elected Saeima has expressed confidence in the Cabinet of Ministers. If confidence in the new Cabinet has not been expressed by mid-November, a temporary budget for 2027 will be prepared.

Priorities and state-owned companies

The finance minister said the budget's constant priority next year is defence and security, but this does not mean that the efficiency of spending will not be assessed. An inventory of state-owned companies is also expected next year.

It was previously reported that the Finance Ministry has drawn up three scenarios and five solutions for forming the budget.