New taxes or tax rates are currently not foreseen / day

« We do this deliberately, » commenting on tax issues, emphasized Silina, not denying that, to some extent, the issue of them appears from time to time.

The head of government emphasized that at the moment the goal is to promote the Latvian economy, overtake others, including savings and wise use of European funds, and prevent the country’s economy from stagnating.

She said one of the government’s primary tasks was to reduce bureaucracy in banks and to promote credit as it promotes the economy.

Siliņa recalled that last year a solidarity tax was introduced for banks, which may not be paid, reaching a certain amount of turnover and lending. She welcomed the amount of lending.

« Only by raising taxes can we bring more money to the Latvian economy. It is important that there is more funding in the overall economy of Latvia, » said the head of government.

She also stated that looking for savings in the existing state budget were inviolable groups, including mothers. The Prime Minister explained that the government does not want to worsen the services available to the population.

As reported, the government decided to set up a defense and security fund on Tuesday.

It follows from the decision that the Cabinet of Ministers plans to move to the expenditure of 5% of gross domestic product (GDP) with 2026 for national defense and security, as well as military support for Ukraine.

The Government was determined as possible sources of funding for additional expenditure required by the Government Budget Deficit, which shall be carried out in accordance with the rules of the State Exception Clause in the period 2028. From 2029, the deficit increases by 0.5% of GDP, reducing the minimum structural balance of the general government budget set out in the law of fiscal discipline.

It is also planned to review their revenue plans for the next three years to the state -owned companies and submit to the State Chancellery (SAO) proposals for a report on possible income increases by June 2, 2025, prior to coordinating them with the shareholding holder.

Public private partnerships (PPP) funding for AM investment is also mentioned. The MoD is expected to prepare a list of potential PPP projects in priority in cooperation with the Ministry of Finance (MoF) by July.

It is also planned to obtain financial resources from 2029, efficiently the functions of the public sector, including policy changes, structural reforms, revision of expenditure and a reduction in expenditure for general government sector institutions. The use of European Union (EU) funds for national defense and security needs is conceptually supported.

As one of the gross debt reduction measures, it is planned to provide for the alienation of minority of state -owned companies, not less than 10%, in the public offering by 2029, including for commercial state -owned companies for which privatization prohibition is imposed in accordance with the regulatory framework.

Prime Minister Evika Siliņa (JV), on the other hand, told reporters after a government meeting that the Ministry of Finance would have to start negotiations with other ministries on where to find additional funds to reach 5% of GDP protection.

Silina said that the funds that would be obtained by reducing bureaucracy could be channeled not only to security, but also to other government priorities – education and support for families.

« First of all, let’s review both the expenditure of the ministries and the (state budget) deficit increase. If it is not enough to go to this 5%, we will look for a way to increase revenue, » said Silina. Therefore, the government’s decision includes proposals to increase revenue for state -owned companies as well.

At the same time, the prime minister emphasized that the process of drafting the state budget had not yet begun, so detailed decisions were expected later.