The Ministry of Finance reported what will happen if the government is not formed by November 19 after the elections to the Saeima 0 7

The commission plans to discuss the improvement of the budget process on March 24.

The Ministry of Finance emphasizes that the preparation of the budget takes several months and begins in the spring: ministries and social partners submit data for the fiscal plan, fiscal risks are assessed, agencies conduct internal analyses, and in the autumn, municipalities present their proposals. All these stages form the basis for the decisions of the government and the Saeima.

Key Stage — Autumn

In the autumn, the process enters a decisive phase:

in October, the government assesses fiscal risks, macroeconomic forecasts are considered, and the results of the expenditure review are summarized. It is at this point that it becomes clear whether a full-fledged budget can be adopted or if there will be a need for a temporary one.

What a Temporary Budget Means

If the formation of the government is delayed, after its approval, work on the budget will proceed at an accelerated pace:

within two weeks, ministries must present drafts of the main and special budgets.

Although preparatory work allows for a quick resumption of the process, the Ministry of Finance acknowledges that political uncertainty seriously affects the efficiency and resources of the involved institutions.

New Approach to the Budget

This year, the budget is being formed for the first time for four years ahead, which implies: more detailed forecasts, regular assessment of expenditures of all agencies. However, the ministry emphasizes that such changes work effectively only with political stability and timely approval of the government. Otherwise, a full-fledged budget is replaced by a temporary solution.

The meeting of the Saeima commission on this issue will take place on Tuesday at 10:00.