As reported earlier by LSM, the lengthy government formation process following October 1 Saeima elections means that Latvia will go into 2023 with a "technical" or "temporary" budget, the Ministry of Finance said, indicating that proposals for policy changes and new measures will be put forward by the new government.
“I have to say that the technical or temporary budget is nothing terrible. And it isn't the first situation the country will start the year with a technical budget. And the legislation has been substantially improved at the moment so that we can feel sufficiently stable in such situations,” Čakša said.
She said that the technical budget means that all the public policies that have been started will continue, and the items that have already received funding will continue to be financed, including continued costs of pensions and different types of aid to population groups.
“It is ensured that the life now continues,” the politician said.
The exception is, however, those cases for which funding is limited until the end of 2022. Nor are there any new policy initiatives in the technical budget.
Čakša also said out that the continuation of aid to Ukrainian refugees needed amendments to the law. Similarly, legislative changes are being made to support energy prices for citizens.
The new budget should be adopted within four months after the government has been approved by the Saeima. The last time Latvia entered the new year with a technical budget was in 2019.
