Government and budget uncertainty hampers state planning, Providus director says

Uncertainty over Latvia’s next government and the state budget is making it harder for institutions to plan their work, Sanda Liepiņa, director of the Providus think tank, told the LETA news agency, according to LSM.

Liepiņa said the time spent forming a government was not exceptional by itself. The problem, she said, was the lack of clarity about the next government’s priorities, division of responsibilities and model for cooperation. It remains unclear whether the United List wants to govern alone or with partners, and whether it plans a conventional coalition or another arrangement.

Providus data covering 10 parliamentary elections since 1993 show that governments have taken an average of 53 days to approve after elections, with a median of 41 days. The quickest approval came 31 days after the 2006 election, while the longest took 109 days after the 2018 election. If a government is approved on November 18 this year, 46 days will have passed since the October 3 election.

Liepiņa also called the slow and unclear budget process a significant problem. Without timely certainty about state finances, institutions cannot plan their work, she said, adding that the uncertainty could also harm the economy. Lithuania adopts its budget on time, while Latvia often falls behind, the article said.

Delays in forming parliamentary committees are also limiting the Saeima’s ability to advance issues and oversee the government, Liepiņa said. If the situation persists, the parliament is effectively failing to carry out its oversight role over the executive branch. The government meeting on November 10 was scheduled to consider the first budget-related legal acts.