In a way, this Ministry of Finance plan perfectly highlights the government's understanding of social policy: it is businesses, not the people, that are being protected and subsidised. The prevailing discourse is still based on the assumption that a targeted increase in household income is economically unproductive, because these increased incomes would then have to be factored into every budget, which would also increase the national debt. However, it fails to take into account that increased household income leads to a higher level of demand, and domestic consumption is one of the components of gross domestic product (GDP). Conversely, rising GDP reduces the level of public debt, assuming that the increased income is not spent on imported goods. In any case, the existing government fiscal plan is inherently misleading and deliberately provides an incorrect impression of the planned investments. Compared to other items, the funding allocated for social protection and public benefits is virtually non-existent.
https://redel.substack.com/p/latvijas-fiskli-maldinoais-plns



