Bank of Latvia: Latvia must move to zero-deficit budget

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The next government should stick to a zero-deficit budget and forgo regular tax changes, President of the Bank of Latvia Ilmārs Rimšēvičs told Latvian Radio Monday.

Rimšēvičs said he hopes that the new government will start working on the next year's budget - which should be a zero-deficit budget - right after it's being instated. He noted that Latvia has had a zero-deficit budget once in 20 years, which is completely unacceptable.

For the umpteenth time Rimšēvičs urged the government - though this time around, the incoming government - not to change taxes year by year, saying that the annual tax changes don't bring substantial benefits to the Latvian economy. Plus, people should be assured that the taxes they pay really do help the state. 

Rimšēvičs was, however, positive about the current state of the Latvian economy, saying that GDP growth could be about 2.7% this year.

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