The Latvian government has today decided to consolidate the country's budget by an additional LVL 27 million. To achieve further additional savings, as the international lenders have pointed to as necessary, the government will seek further negotiations. The lenders talk about a need for savings on additional LVL 50 million.
Revenues will be boosted by efforts to overcome the so-called shadow economy. This government hopes for financial reinforcements in the order of LVL 12.8 million.
The number of jobs in key ministries will be cut by 10%. It is expected to generate savings in of around LVL 2 million. Meanwhile, the number of employees in areas such as police, border guards, fire and rescue service and probation is proposed to decrease by one percent.
The Ministry of finance also proposes that the reduced VAT on natural gas should be raised from 12 to the standard level of 22%. It would provide additional revenues of LVL 1.6 million.
Government is also proposing the introduction of a separate fee for non-banking companies that provide consumer credit. An initial registration fee for those of LVL 50,000 and then an annual fee of LVL 10 000 would provide the state another LVL 8.3 million per year.
The Ministry has also proposed to raise the gambling tax. However, without mentioning any specific level.
(Andra intressanta bloggar om politik, Lettland, Baltikum, Europa)
(Andra intressanta bloggar om politics, Latvia, Baltcs, Europe)
