Politicians expect the biggest discussions about labor tax changes.
The law provides that the deputies, specifying the source from which to take funding, can submit proposals in the budget bill. After the cooperation meeting of the coalition parties, Finance Minister Arvils Asheraden (JV) told journalists that the Constitution provides for a lot of freedom of action, but usually support for various initiatives is limited to a balanced budget. The minister noted that there have been times when opposition proposals have been supported.
Economy Minister Viktors Valainis (ZZS) expressed that it is difficult to remember any budget when absolutely no opposition proposal was supported or partially supported. In a parliamentary democracy, the deputies are the ones who determine whether the budget will be approved, the politician emphasized.
Chairman of the “Progressive” faction, Andris Shuvajevs, expects that the biggest discussions in the parliament will be about labor tax changes, because there have been no tax changes for a “long time”. The politician is sure that both coalition and opposition MPs will want to express themselves about the upcoming changes.
The government had to make difficult decisions in order to be included in the security priorities, so the opposition will have the opportunity to discuss all other areas that do not receive additional funding, Shuvayev said.
Valainis reasoned that the opposition might also want to have a broad debate on the transfer of part of the second level of pensions to the first level.
“I think that the budget has been prepared in a sufficiently balanced way. The coalition has a budget that can be defended by all parties,” the politician believes, stressing that it will be difficult for the opposition to criticize it.
Traditionally, social issues come out loud in budget debates, Asheraden added. In the opinion of the Minister of Finance, one of the main issues raised by the opposition could be the provision of funding for the “Rail Baltica” route for the next period. The budget provides co-financing in the amount of 15%, but no other financing is planned.
This week, the budget and finance (tax) commission of the Saeima will begin reviewing the state budget for 2025 and the budget framework for 2025, 2026 and 2027. Prime Minister Evika Siliņa (JV) and Minister of Finance Asheraden will participate in the meeting.
Last week, the Saeima submitted the next year’s budget draft for consideration by commissions.
Revenues of the state consolidated budget for the next year are planned in the amount of 15.081 billion euros, while expenses – in the amount of 17.093 billion euros.
Compared to the 2024 budget, the planned state budget revenues in 2025 are planned to be 583.2 million euros higher. On the other hand, state budget expenditures in 2025 are planned to be 876.5 million euros higher than in the 2024 state budget law. Revenues planned in the basic budget amount to EUR 10.2 billion, while expenses amount to EUR 12.7 billion. On the other hand, in the special budget, revenues are planned at 5.2 billion euros, and expenses at 4.7 billion euros.
Internal and external security of the country is defined as the main priority of the country.
Next year’s general government budget deficit is planned to be 1.3 billion euros or 2.9% of the gross domestic product (GDP).
The budget plans to set the maximum state debt ceiling at the end of 2025 in the amount of 21 billion euros, or 47.3% of GDP. On the other hand, next year’s GDP is planned to be 44.379 billion euros.
The proposal for changes in labor taxes envisages increasing the net income of approximately 95% of employees, or all those whose gross salary is up to 4,000 euros per month. The biggest increase is intended for employees with a salary of up to 2,500 euros.