On Tuesday, 16 June, at its extraordinary meeting the Saeima (Parliament of Latvia) at the final reading adopted amendments to the Law on National Budget for 2009 and amendments to 111 budget-related laws which were drafted by the government. 

Amendments adopted by the Saeima to the Law on National Budget for 2009 envisage decreasing national budget expenditures by LVL 500 million. 93 MPs cast their vote on amendments to the Law on National Budget, among them 63 voted for, 30 voted against. 

„We are well aware that today’s decisions are very unpopular. However, we are also aware that in the current situation there are no other options and that we, politicians, had to take nationally responsible decisions. After serious and heated discussions in the parliament and negotiations with social partners, the Saeima managed to reach the only possible compromise,” said Gundars Daudze, Speaker of the Saeima.

The Speaker of the Saeima emphasised that by adopting government’s proposed amendments to the budget, Latvia has affirmed its readiness to overcome the current difficulties, and by receiving international financial loan to resume the road towards economic growth.

Gundars Daudze noted that today’s agreement with social partners is of great significance because it envisages developing the national budget for 2010 in accordance with the so-called zero principle. By joining efforts with experts and trade unions it is planned to re-examine the usefulness of all programmes which so far have been financed by the state, and to shape the budget from scratch. 

Amendments to the Law on the National Budget for 2009 and amendments to budget-related laws will enter into force as of 1 July 2009.

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