One of the most serious challenges for the government in preparing the budget draft for next year was not to raise basic taxes, Prime Minister Evika Silina said today in an interview with TV3, LETA reports.
According to the head of the government, the budget draft achieved a balance between security needs and support for the population. At the same time, there is a lack of funds in the state budget, so the refusal to raise taxes required finding opportunities for savings.
Regarding cuts, Silina predicts heated debates in the Saeima. She noted that there is strong pressure in society for savings, but as soon as specific proposals emerge, protests arise from various sides — "not in our sector," and as a result, many initiatives for cuts "dissolve."
In Silina's assessment, over three years, the government has managed to reduce budget expenditures by 800 million euros. Therefore, she disagrees with the criticism from entrepreneurs that the Cabinet of Ministers allegedly did not sufficiently consider balancing the budget, optimizing public administration, and implementing reforms.
The Prime Minister added that one of the major reforms that should provide significant savings in the future is changes to the pension system based on years of service. On this issue, Silina also expects serious discussions in parliament.
She expressed dissatisfaction with the Ministry of Culture's work in seeking more optimal solutions for reforming the pension system based on years of service — the ministry has not yet proposed the abolition of this benefit for any group of cultural workers.
The Prime Minister expressed hope that by the second and third readings in the Saeima, the ministry would still present proposals aimed at more substantial improvements in the cultural sector. In particular, the ministry should think more actively about the possibility of retraining for workers in this field.
Some ministers may have lacked the courage and desire to engage in a difficult dialogue with representatives of their sector, Silina summarized the discussions in the government about reforming the pension system based on years of service.
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