Government’s action plan may be clarified in time due to shortage of funds

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Because of the shortage of funds, the government plan may be clarified after some time, said Latvia’s Prime Minister Krišjānis Kariņš during a meeting of the National Council for Trilateral Cooperation on Tuesday, 16 April.

He said the government action plan’s implementation in four years will require EUR 1 billion. However, Latvia’s government does not have this much money. With that, the plan will be clarified soon. The prime minister also said that the government will think about implementation of activities included in the plan.

According to Kariņš, the government action plan contains seven priorities. First of all, there is the sorting of the country’s finance system, which mainly includes compliance with recommendations provided by international organizations. «We will not focus solely on recommendations – we will go further and create one of the best finance systems in Europe,» stressed the prime minister.

Secondly, the government action plan is meant to enhance justice and rule of law. «In interview to international media I had emphasized that I wish to attract more private investments to Latvia to improve employment, exports and secure more money for the social budget. However, it is important for investors to have a well-organized environment to work in,» adds Kariņš.

Thirdly, the government action plan also details a priority to reform the country’s education system, improve the school network and increase school accessibility. Fourthly, the government also plans to reform the healthcare system, make healthcare institutions network more efficient and expand its accessibility.

On top of that, the government is committed to fully abolishing the mandatory procurement component system. There is also the matter of the territorial administrative reform to help expand accessibility of services for residents. The plan details activities for demographic affairs, not just birth rates but also re-emigration, reduced immigration and different solutions to solve the shortage of labour force.

Pēteris Vilks, director of the Cross-Sectoral Coordination Centre, which is responsible for the implementation of the action plan, says the development process was complicated because of such enormous fiscal desires.

Vilks adds that all fiscally-large activities will be made realistic, considering that coalition parties have signed a fiscal discipline agreement, which means a number of the action plan’s activities will have to be viewed during the budget development process.

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