The Deputy Informed the Public of Two News. The Second One Is Very Bad 0 7

In the Saeima, as is tradition, the speakers on the budget issue were divided into two camps. The first camp, representatives of the ruling coalition, assure that the budget is simply wonderful, while the second camp, from the opposition, criticizes the main financial law of the country harshly. The opposition deputy from the United List, Aiva Viksna, provided her devastating assessment of the financial and economic situation: "I have two pieces of news for the residents of Latvia. The good news is that there will be money for internal and external security, we will be safe. But there is also a second piece of news. This project should actually be called by its true name, that is, the ruling coalition has laid out a budget that leads down the road to the bankruptcy of the country. This statement of mine is not the usual rhetoric of the opposition. Moreover, it is not related to the election period, as the current representatives of the ineffective government will surely try to present it. This assertion is based on an analysis of data and real budget figures...

What is the main factor that allows such a sharp conclusion? The most important thing is the growth of public debt and the government's inability to justify the rationale for such borrowing orgies. In 2026, public debt is planned to increase to 51 percent of GDP, in 2028 it will be 55, and by 2029 it will be almost 60 percent of GDP.

To help the residents of Latvia better understand what lies behind these figures, I will provide just one calculation. In the mentioned year of 2028, every child born in Latvia will already come into the world with a debt burden of almost 15,000 euros, which they will have to repay in the future, regardless of their occupation or political sympathies. This is the future that the current ruling coalition has predicted for our yet-to-be-born child.

Of course, I can already hear objections that borrowing is not a big deal. It is an opportunity for growth. In other European countries, the debt is much higher.

Perhaps that is true, as long as the borrowed money goes towards growth and economic development. Unfortunately, in Latvia, these easily grasped millions are intended for something else — simply consuming and servicing the debt itself. Yes, part of the money will be invested in strengthening the country's defense, and that is right and justified. But in reality, these investments will amount to only, at most, one-third of the planned debt growth. Where will the rest of the money go? Firstly, for the aforementioned debt servicing, in 2026 it will amount to 584 million, and in 2028 - 700 million.

But how much has this government allocated for improving and developing the business environment, which is critically important for the state to receive any revenue at all? The figures only confirm that we are deeply in a hole in this area. In Estonia, 23,000 enterprises were registered last year, in Lithuania — 16,000. And guess how many in Latvia? Only nine thousand.

Next. The country's export-import balance.

In the first half of this year, exports grew by 3.9 percent compared to the same period last year, while imports grew by 7.9 percent. Colleagues, is this growth? No, we are buying more than we are selling. These figures are shocking. If this trend continues, the bankruptcy of the country I mentioned earlier may be even closer than one could foresee in the worst nightmares.

So, once again: how much has the government planned to spend to at least start restoring the business environment? The figures: in 2026, unchanged for three years, only 400,000 euros. Dig into the numbers! Here we have 700 million for debt servicing and only 400,000 for earning that repaid money. Of course, you will say — European Union funds. But what does the Bank of Latvia indicate? It is as if our regional policy depends on European money. And when it runs out, what will we do? If this is not a path to bankruptcy, then I do not know how we would characterize it."

The lengthy debates in the Saeima regarding the budget continue. Dozens of deputies are already registered to participate in the debates.