Kulbergs: Latvia must stop living on debt, borrowed money needs to pay off

Prime Minister Andris Kulbergs (AS) called on Saturday for a change in how Latvia handles borrowed funds, speaking at a congress of the Latvian Regions Alliance (LRA) in Ulbroka. According to Kulbergs, the state should no longer use loans for simple consumption — every borrowed euro must generate an economic return.

Criticism of past policy

The prime minister criticized the fiscal course of recent years, saying society had become accustomed to living on borrowed money for too long. He explained that the state's financial situation is complicated not only by already planned new borrowing, but also by previously assumed obligations and additional expenditures mandated by various legal acts. Without a change in approach, he warned, a significant shortfall could emerge in the state budget in the future.

A euro must earn euros

Kulbergs stressed that borrowed funds should be directed only toward projects that generate economic growth and deliver real returns. "Every euro must earn several euros in return," he said, adding that this principle should become the foundation of the state's financial policy.

He also noted that he entered politics thinking about Latvia's future and that of his own children, as well as out of conviction that the country needs to change its development course. As prime minister, he said, his duty is to represent the interests of the whole of society, not just those of the political force that elected him.

The LRA congress in Ulbroka was held to discuss national security and development issues, the current political situation, and the organization's future goals and priorities. LRA is a founding member and participant of the United List party alliance.