The audit conducted by the State Audit Office regarding state policy on limiting the shadow economy was very weak and superficial, said Finance Minister Arvils Asheradens ("New Unity") in an interview with Latvian Radio, LETA reports.
He noted that both the data from researchers and the Central Statistical Bureau indicate a consistent decrease in the share of the shadow economy, which is the result of systematic and meticulous work by the Ministry of Finance, the government, and society as a whole. However, according to him, the auditors of the State Audit Office did not take this into account, and as a result, the report contains "not a single kind word, everything is bad."
The minister listed various state measures to combat the shadow economy and emphasized that the Ministry of Finance and the State Revenue Service (SRS) closely cooperate with industry organizations. For example, the construction sector, he said, does not show the same willingness to cooperate as the medical field, where the shadow economy is hidden in the beauty industry.
"In this case, this is the first time I consistently disagree with these conclusions [of the State Audit Office's audit]. We are indeed working. There are only four or five people working on this in the ministry. Of course, there are the SRS and the Financial Police, who are also working, but their activities were not reflected at all in this audit," the politician stated.
However, in response to the question of whether this means that the plan to combat the shadow economy is good and does not need to be changed, Asheradens answered negatively, acknowledging that plans are constantly being adjusted—in consultations with industries, organizations representing economists, as well as in cooperation with society and with a focus on addressing the causes, not just the consequences.
As previously reported, the State Audit Office, during its audit of state policy on limiting the shadow economy, concluded that despite the government's long-standing attention to this issue, the existing approach is insufficiently effective, as the planned and implemented measures are largely aimed at addressing the consequences rather than the causes.
