PM: State will help residents cover energy prices

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As a result of inflation and especially energy price increases, the State intends to provide support to the population, and it is intended to raise funds in the state budget and borrow in international markets, Prime Minister Krišjānis Kariņš said June 15 said after meeting with the President Egils Levits.

Although the details have not yet been agreed on, Kariņš said that it is intended to target lower-income residents in order to compensate for the overall increase.

“Life is becoming more expensive as a result of the Russian war, and we, as a government, want to soften this spike, especially for people for whom it is objectively harder to deal with by themselves,” the Prime Minister said.

It is possible that the increase will be partly covered from the state budget.

The aid could be introduced as of September. At the same time, Kariņš said he wants to reach an agreement on this earlier so that there is clarity on what is expected.

Karins said that if the state budget was not enough, Latvia could borrow from international markets.

“Indeed, it's more expensive to borrow money now, but we still have this opportunity in the currency markets. And what I do not foresee at this time is that we would increase tax rates on citizens in such circumstances. The aim is not to raise tax rates. The desire is not to increase the debt, as much as possible, by reallocating the budget growth first,” the Prime Minister said.

President Egils Levits added that the system must be aimed at supporting those most in need. “In the autumn, when the big bills come, a targeted support system will be prepared, because it is very important that those who need it very much, receive it,” Levitx said.

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