Four parties of the ruling coalition in Latvia together with Atis Zakatistovs’ Stability Group have reached a political agreement on the 2022 state budget, as confirmed by the Latvian Prime Minister Krisjanis Karins.
He said in the next year’s budget it would be very important to promote both economic growth and residents’ welfare, as well as development specific sectors of industry.
At the same time, he said next year it was planned to execute an increase of wages for people employed in the healthcare, education and interior affairs sector.
Wages will increase for doctors, teachers and police officers.
It is also planned to increase financing for research. In the healthcare sector it will be possible to expand accessibility of services, including cancer treatment.
At the same time, the coalition also agreed on a reduction of the labor tax burden.
This step is intended for residents with low wages. This means from January 1, 2022 the non-taxable minimum will be increased to EUR 350 and from July 1, 2022 – to EUR 500.
There are also plans to major investments for large businesses. Significant investments are planned for regional development, including road and municipal infrastructure, said the PM.
Karins thanked all partners for the constructive discussion during the entire talks procedure.
“The process was complicated and, I believe, very fruitful,” he said.
Minister of Agriculture Kaspars Gerhards said at a press-conference after a meeting of the Cooperation Council until now the interior affairs sector did not receive enough finances.
“It is clear this is a sector that is vital to ensure both public safety and our vision for the future. This is especially true when looking at the situation on Latvia’s eastern border,” said the politician.
At the same time, he said he was happy his colleagues agreed with Minister of Culture Nauris Puntulis’ proposals on increasing wages in the culture sector and reduction of VAT for printed press and books.
Attistibai/Par! Saeima faction chairman Juris Puce stressed that the agreement reached by the coalition was good and that it met all of his party’s budget priorities. Puce mentioned defense and domestic security as sectors where it was planned to provide additional financing. Defense will receive financing worth more than 2% of GDP.
The politician also mentioned allocation of more than EUR 40 million for the interior affairs system. This includes a major increase of wages for people employed in this sector. Puce said it was planned to divert EUR 100 million towards healthcare. This money is planned to be used on wage increase, cancer plan implementation and other healthcare-related programs.
Investments into regional development will continue. The state will also continue the loan program for municipal investments, said the head of AP faction.
He said in the 2022 budget it was planned to increase the non-taxable minimum, which would serve as support for residents with low income.
The head of Saeima’s Stability Group Atis Zakatistovs said additional financing in the 2022 state budget might reach EUR 300 million. The exact amount will be clarified in the future. (BNN/Business World Magazine)
