Parties’ pre-election promises lack clear funding sources, analysis shows
Many parties contesting the 15th Saeima elections have made financially ambitious promises without specifying how they will be funded, according to a LETA analysis.
An analysis of election manifestos submitted for the 15th Saeima elections reveals numerous costly pledges, often lacking clear cost estimates or funding sources. The review, conducted by LETA, highlights a shift from short-term crisis measures in 2022 to long-term budgetary commitments in 2026.
In 2022, parties focused on energy price hikes, inflation, and security threats from Russia. Now, pledges center on overhauling health care, defense, science, taxes, pensions, and housing policy.
The Finance Ministry forecasts a budget deficit of 3.3% of GDP in 2026, with defense spending at 4.9% of GDP. Several parties promise defense funding above 5%, aligning with current policy, while also proposing support for local military industry, bomb shelters, and internal security.
The Union of Greens and Farmers pledges 6% of GDP for health, 2% for higher education, a minimum wage of €1,250, and an average pension of €1,000. New Unity similarly targets 6% for health, 3% for R&D, 5% for defense, investments above 30% of GDP, and 3.5% GDP growth. The National Alliance focuses on security and demography, offering a €15,000 grant per child for mortgage repayment.
Latvia First promises tax cuts, including 10% corporate tax and 10% VAT, plus €10 billion in infrastructure projects through PPPs. Stability! proposes a balanced budget without borrowing, while The Progressives advocate higher benefits and pensions. Many parties propose abolishing property tax on primary residences.
Overall, most manifestos lack detailed calculations on how to finance these proposals, raising concerns about fiscal sustainability.
