The situation is difficult, but there is hope that there will be no budget cuts next year


By the end of the year, an energy crisis has been declared in the country in the supply of petroleum products, and from January 1, Latvia intends to completely abandon Russian gas.

How the energy crisis affects local business and whether it is possible to predict what the next year’s budget will be, the portal asked the head of the Supervisory Board of the Latgale FEZ Janis Lachplesis.

Economists predict that the energy crisis will peak in autumn, but many sectors are already experiencing it. You need to understand that the income to the budget depends on the work of the business.

Thus the situation with the budget for the next year practically does not depend on action of self-management. And the government is not able to manage the global processes that often cause these problems and upheavals.

In order to predict the next year’s budget, it is necessary to make a forecast of how the events of the current year will develop, moreover, events not even of a national, but of an international scale.

In general, the situation is difficult, but we have experience of going through this. I still hope that there will be no budget cuts next year, and if there are, they will not be direct: inflation will be higher than budget growth. Now the purchasing power of each of us is actually falling. In the same way, it can also decrease within the city budget.

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