1
Approved in accordance with
the Order of the Cabinet of Ministers of 2009
No.
The Action Plan for Implementing the Latvia’s Economic Stabilisation
and Growth Revival Programme
Abbreviations:
CoM – the Cabinet of Ministers of the Republic of Latvia
ECS – participation in the Electronic Clearing System
EIF – the European Investment Fund
EU – the European Union
FCMC – the Financial and Capital Market Commission
GDP – gross domestic product
IMF – the International Monetary Fund
LB – the Bank of Latvia
LHZM – the Mortgage and Land Bank of Latvia, State Joint Stock Company
MoA – the Ministry of Agriculture of the Republic of Latvia
MoC – the Ministry of Culture of the Republic of Latvia
MoE – the Ministry of Economics of the Republic of Latvia
MoENV – the Ministry of Environment of the Republic of Latvia
MoES – the Ministry of Education and Science
MoF – the Ministry of Finance of the Republic of Latvia
MoH – the Ministry of Health of the Republic of Latvia
MoJ – the Ministry of Justice of the Republic of Latvia
MoRDLG – the Ministry of Regional Development and Local Government of the Republic of Latvia
MoT – the Ministry of Transport of the Republic of Latvia
MoW – the Ministry of Welfare
PM – the Prime Minister of the Republic of Latvia
SC – the State Chancellery of the Republic of Latvia
SMEs - Small and medium enterprises of Latvia
SoSAMEGA – the Secretariat of Special Assignments Minister for Electronic Government Affairs
VAT – value added tax
WB – the World Bank
No / Objective / Result / Responsible institution / Deadline / Reference(document; clause)
1 / Preparation of amendments to the Law “On the State Budget 2009” / Amendments to the Law submitted to the Saeima (Parliament) / MoF / 31.03.2009 / LOI-25, (structural criterion); MOU - Q2 - 2009
2 / Preparation of amendments to the Law “On Budget and Financial Management” with the assistance from the IMF and the EU (enhancement of provisions on financial accountability, responsibility and transparency, and particularly – setting the budget expenditure ceiling, etc.) / Amendments to the Law submitted to the CoM / MoF / 30.04.2009 / LOI-28; MOU - Q2 - 2009
Law proclaimed / MoF / 30.06.2009 / LOI-28, (structural criterion)
3 / Amendments to the Insolvency Law, in order to simplify, arrange and increase the efficiency of the debt restructuring, to evaluate the efficiency of the bankruptcy procedure for natural persons: / LOI-18, (structural criterion)
3.1. / Information of the Cabinet of Ministers about the additional amendments to the Insolvency Law necessary to clarify the creditors’ voting system with an aim to increase the efficiency of the insolvency procedure. / Report submitted to the CoM / MoJ / 15.03.2009 / LOI-18,
Law proclaimed / MoJ / 30.06.2009 / LOI-18, (structural criterion)
4 / With the technical assistance from the IMF, preparation of amendments to the Law “On Crediting Institutions” / Draft Law submitted to the CoM / FCMC, MoF / 30.04.2009 / LOI-15, MOU Q4 – 2009
Law adopted in the Saeima / FCMC, MoF / 30.06.2009 / LOI-15, (structural criterion)
MOU Q4 - 2009
5 / Preparation of a draft Deposit Guarantee Law:
1) providing for assignments, taking into account the authority granted to the fund, to increase the amount of payments according to the guaranteed payments;
2) introduction of a mechanism to ensure fast reimbursements from the deposit guarantee fund. / Draft Law submitted to the CoM / FCMC, MoF / 30.04.2009 / LOI-15, MOU Q4 - 2009
Law proclaimed / FCMC, MoF / 30.06.2009 / LOI-15 (structural criterion);
MOU Q4 - 2009
6 / With technical assistance from the IMF and the World Bank, preparation of a comprehensive private debt reconstructing strategy / Strategy approved in the CoM / MoF, FCMC / 31.03.2009 / LOI-16, (structural criterion) 30.04.2009.
7 / With foreign technical assistance, assessment of the merits of establishing an independent asset management entity which would deal with taking over bad assets from banks and restructure nonperforming loans. / Informative statement submitted to the CoM / MoF, FCMC (work group) / 31.03.2009 / LOI-17
8 / Taking measures aimed at encouraging the revision of provisions for loans granted to the natural persons in order to preclude the creditors from unreasonably broad auctioning of pledged property. / Informative statement submitted to the CoM / FCMC, MoF / 30.06.2009 / LOI-18
9 / From 2010, introduction of a 10 percent tax rate on all capital income (interest, dividends, royalties, rental income, realised nominal capital gains on immovable property) / Draft Law submitted to the CoM / MoF / 01.09.2009 / LOI-23
10 / From 2010, broadening of the immovable property tax base by removing several real estate tax exemptions / Draft Law submitted to the CoM / MoF / 01.06.2009 / LOI-23
11 / Examination of the necessity to increase state duties and paid-service prices and, in this respect, designation of all line ministries as responsible institutions / Report on the assignments of ministries submitted to the CoM / MoF / 16.03.2009 / LOI-23
12 / Attaining the deficit target of:
1) 4.9% of GDP by 2009 (to 5.3% according to ECS 95);
2) 4.8% of GDP by 2010 (to 5% according to ECS 95);
3) 2.9% of GDP by 2011 (to 3% according to ECS 95). / Report “On State Budget Execution Process” (15.04.2008,CoM,prot. 24, §42) submitted to the CoM) / MoF / within a month after the end of each quarter / LOI-25, (structural criterion); MOU - Q2/Q3/Q4 - 2009; MOU - Q4 - 2009/ Q3 2010; MOU - Q1 2011
13 / The budget law for 2009 provides for a sufficient amount of budgetary funds for the implementation of the planned programs co-financed from the structural funds. By the end of 2009, Latvia must be able to show efficient disposition of the funds (expenditures by the intermediary institutions) in the amountof at least 60 million euros from the European Social Fund, 170 million euros from the Cohesion Fund and 270 million euros from the European Regional Development Fund. / Informative statement on the chapter dealing with the appropriate disposition of the EU funds within the administration of the EU funds submitted to the CoM (half-year statements) / MoF, MoT, MoES, MoE, MoW, MoH, MoENV, MoRDLG, MoC, SoSAMEGA, SC / 15.08.2009,15.02.2010 / MOU - Q4 - 2009
13.1 / Pursuant to the Budget Law for 2009, Latvia has to be demonstrate efficient allocation of the resources (expenditures of intermediary institutions) by the end of 2009 , ie., 35.6 million LVL from the European Agricultural Fund for rural development; 12 million LVL from the European Fisheries Fund and 139 million LVL from the European Agricultural Guarantee Fund. / Informative statement on the chapter dealing with the appropriate disposition of the EU funds within the administration of the EU funds submitted to the CoM (half-year statements) / MoA / 15.08.2009
15.02.2010
14 / The budget law for 2010 provides for a sufficient amount of budgetary funds for the implementation of the planned programs co-financed from the structural funds. In 2010, Latvia must be able to show efficient disposition of the funds (expenditures by the intermediary institutions) in the amount of at least 66 million euros from the European Social Fund, 185 million euros from the Cohesion Fund and 291 million euros from the European Regional Development Fund. / Informative statement on the chapter dealing with the appropriate disposition of the EU funds within the administration of the EU funds submitted to the CoM (half-year statements) / MoF, MoT, MoES, MoE, MoW, MoH, MoENV, MoRDLG, MoC, SoSAMEGA, SC / 15.08.2010 15.02.2011 / MOU - Q1 - 2011
14.1 / Pursuant to the Budget Law for 2010, Latvia has to be demonstrate efficient allocation of the resources (expenditures of intermediary institutions) by the end of 2010 , ie., 40 million LVL from the European Agricultural Fund for rural development; 10.4 million LVL from the European Fisheries Fund and111 million LVL from the European Agricultural Guarantee Fund. / Informative statement on the chapter dealing with the appropriate disposition of the EU funds within the administration of the EU funds submitted to the CoM (half-year statements) / MoA / 15.08.2010 15.02.2011
15 / Provision in the budget law for 2011 for a sufficient amount of budgetary funds for the implementation of the planned programs co-financed from the structural funds. In 2011, Latvia should try to attain the annual expenditures (expenditures by the intermediary institutions) in the amount of at least 72 million euros from the European Social Fund, 201 million euros from the Cohesion Fund and 318 million euros from the European Regional Development Fund. / Informative statement on the chapter dealing with the appropriate disposition of the EU funds within the administration of the EU funds submitted to the CoM (half-year statements) / MoF, MoT, MoES, MoE, MoW, MoH, MoENV, MoRDLG, MoC, SoSAMEGA, SC / 15.08.2011 15.02.2012 / MOU - Q1 - 2011
15.1 / Pursuant to the Budget Law for 2011, Latvia has to be demonstrate efficient allocation of the resources (expenditures of intermediary institutions) by the end of 2011 , ie., at least 40 million LVL from the European Agricultural Fund for rural development; 11.4 million LVL from the European Fisheries Fund and105 million LVL from the European Agricultural Guarantee Fund. / Informative statement on the chapter dealing with the appropriate disposition of the EU funds within the administration of the EU funds submitted to the CoM (half-year statements) / MoA / 15.08.2011 15.02.2012
16 / Fully and without delay, implementation of the State Audit Office recommendations of September 2008 (12 recommendations) regarding the assessment of implementation of the 2007 state and local government budget for the improvement of the internal control system. / Letter sent to the State Audit Office on the accomplishments in the implementation of recommendations which is due to be done by 1 March 2009 / MoF / 31.03.2009 / On 2009 etc.
LOI-26; MOU - Q2 - 2009
Letter sent to the State Audit Office on the accomplishments in the implementation of recommendations which is due to be done by 1 July 2009 / MoF / 30.09.2009 / On 2009 etc.
LOI-26; MOU - Q2 - 2009
17 / In cooperation with the IMF, enforcement of the Public Private Partnership (PPP) Law and related legal acts stipulating the implementation of the PPP projects. The PPP Law should be adopted prior undertaking any large PPP projects in addition to the projects commenced by the end of 2008. / Draft Law sent for its endorsement with the IMF / MoE, MoF / 15.02.2009 / MOU - Q3 – 2009, LOI-28 (01.12.2009.)
Draft Law submitted to the CoM / MoE, MoF / 30.03.2009 / MOU - Q3 - 2009, LOI-28 (01.12.2009.)
18 / Increasing the VAT rate if it will be needed in order to attain the deficit target of 3 percent of GDP by 2011. / Informative statement containing projections on opportunities to attain the objective (CoM) / MoF / 01.06.2010 / LOI-29
In case if the statement draws a conclusion that there are no other alternatives for attaining the deficit target, amendments to the Budget Law package submitted to the CoM / MoF / 01.10.2009 / LOI-29
19 / By taking into account the recommendations by international institutions, improvement of the system for reimbursements of overpaid VAT. / Draft Law “Amendments to the VAT Law” submitted to the CoM / MoF / 01.09.2009 / MOU - Q3 - 2009; LOI-32
20 / Making a progress towards the reduction of nominal wages and number of employees in the public sector, including the implementation of the mentioned activities within the local governments, state agencies and other public institutions. / Report submitted to the CoM / MoF / 15.01.2009
15.04.2009
15.09.2009
15.04.2010
15.09.2010
15.04.2011 / LOI-29; MOU - Q2/Q3/Q4 2009/Q3 2010/Q1 2011
21 / If needed, additional reduction of wages in the public and local government institutions and local government companies from 2010. / Report submitted to the CoM / MoF / 15.09.2009 / LOI-30
Upon the decision by the CoM, submission to the CoM of amendments to the law on wages of the officials and employees in the public and local government institutions for 2009, if additional reduction of wages in the public and local government institutions and local government companies will be needed from 2010. / MoF / 01.10.2009 / LOI-30
22 / Further improvements in the wage system for public administration employees in order to ensure uniform principles in setting and planning the wages; the wage-setting procedure should be simplified and based on strict regulations, including the revision of wage-setting mechanism in the agriculture. / Submission to the CoM of a draft law on uniform wage system for officials (employees) in the public and local government institutions / MoF, SC / 01.06.2009 / MOU - Q3 - 2009
23 / Introduction of a uniform human-resource planning and management system in the public administration institutions; development and introduction of a uniform annual assessment system of officials and employees according to their competence criteria. / Submission of regulations to the CoM / SC, MoF / 30.09.2009 / MOU - Q3 - 2009
24 / Building analytical capacity in the fields of finance and economics / Proposals to the CoM / MoF, MoE, MoW, FCMC / 01.04.2009
25 / Introduction of a systematic and comprehensible system for evaluating impacts of the assistance from the European Union funds / Report on the development of the system for evaluating impacts of the assistance from the funds submitted to the CoM / MoF / 30.04.2009 / MOU - Q2 - 2009
26 / Measures aimed at increasing the capacity of those public administration institutions which are engaged in administration of EU funds by particularly improving the project selection procedures, and measures aimed at ensuring the necessary pre-conditions for approval of large-scale infrastructure investment projects (including technical research and plans). It is necessary to simplify administration of EU funds, including a review of activities of the institutions engaged in administration of EU funds. / Report to the CoM „On Recommendations for Simplification of Administration of EU Funds and Review of Activities of the Institutions Administering EU Funds" / MoF, MoE, MoRDLG / 30.06.2009 / MOU - Q2 - 2009
27 / Development of standardised methodology for formal selection requirements in public procurement; use of centralised state and local government procurement, as well as improvement of the application of the e-procurement system in order to enhance efficiency and transparency of the procurement process. / Guidelines for Drawing up Documents Related to the Procurement Procedure / MoF (in cooperation with the line ministries and NGOs) / 30.06.2009 / MOU - Q2 - 2009
Methodological recommendations for organisation of a centralised procurement procedure / MoF / 30.04.2009 / MOU - Q2 - 2009
Workshops/seminars for contracting authorities on organisation of centralised procurement procedures and on their advantages / MoF / 30.06.2009 / MOU - Q2 - 2009
Plan for enhancement of the use of the e-procurement system in order to improve efficiency and transparency of the procurement process; submitted to the CoM / SoSAMEGA / 01.10.2009 / MOU - Q2 - 2009
28 / Improved identification of the objectives in the whole social insurance network within the budget of social expenditure (aimed at balancing the social budget in the long term) / Report submitted to the CoM / MoW / 30.06.2009 / LOI-24
29 / Implementation of comprehensive reforms in education, health care, public administration and civil service in 2009 by using the technical assistance of the WB in order to attain a budget expenditure economy in the amount of 2% of GDP in 20010: / Action plans for implementation of the reforms submitted to the CoM / LOI-28
29.1 / The MoES shall submit an action plan for structural reforms in the area of education by taking into account the recommendations of the WB / Plan submitted to the CoM / MoES / 31.03.2009 / LOI-28
29.2 / The MoH shall submit an action plan for a reform of the health care system by taking into account the recommendations of the WB / Detailed calendar plan submitted to the CoM on optimisation and assignment of functions of the institutions indicated in the informative statement / MoH / 31.03.2009 / LOI-28
Plan for the implementation of the reform which is prepared in cooperation with experts of the WB and is to be submitted to the CoM / MoH / 31.03.2009 / LOI-28
29.3 / By 1 July 2009 the State Chancellery shall prepare and submit an action plan on optimisation of the public administration system and civil service by using the technical assistance of the WB. / Plan submitted to the CoM / SC, MoF / 30.03.2009 / LOI-28
30 / Ensuring freezing of pensions as of 1 January 2009: / Relevant laws and regulations submitted to the CoM / MoW / 15.03.2009 / LOI-24
31 / Ensuring indexation of pensions only according to the inflation rate starting from 2010 / Relevant laws and regulations submitted to the CoM / MoW / 15.06.2009 / LOI-29
32 / Appointment of the National Development Council as the national committee in charge of evaluation of Latvia’s long-term strategic opportunities and potential / Amendments to the Cabinet regulations setting forth additional provisions on the duties and composition of the National development Council submitted to the CoM / MoRDLG / 01.03.2009 / LOI-32
33 / Strengthening of progress towards the objectives of the National Lisbon Programme / LOI-32
33.1 / Research and development (R&D), innovations / LOI-32
33.1.1 / Updating of the draft Guidelines for the Development of Science and Technologies in 2009-2013 by defining specific implementation deadlines for funding of fundamental and applied research in the priority branches of science and for preparation of applications for national research programmes and by allocating adequate funding / Draft guidelines submitted to the CoM / MoES / 16.03.2009 / LOI-32
33.1.2 / Definition of the priority lines of research for 2010-2013 in cooperation with representatives of various industries / Draft order of the CoM submitted to the CoM / MoES, MoE, MoA, MoH, MoENV, MoRDLG / 05.07.2009 / LOI-32
33.2 / Active labour market policy / LOI-32
36.2.1 / Identification of priority lines of training for the unemployed persons and job seekers in which training programmes would be offered / Report submitted to the CoM. / MoW / 01.03.2009 01.03.2010. 01.03.2011. / LOI-32
33.2.2 / Implementation of active employment measures in 2009 / Action plan implemented / MoW / 31.12.2009 / LOI-32
33.2.3 / Measures aimed at avoiding further delays in the operational programme „Human Resources and Employment” pursuant to the adopted planning documents which can be reviewed, when appropriate; undertaking of obligations and conclusion of agreements / Action plan for the implementation of the programme approved by the CoM / MoF, MoW, MoH, MoES, SC / 01.03.2009 / MOU - Q3 - 2009
Report on the progress in implementing the programme submitted to the CoM / MoF, MoW, MoH, MoES, SC / 30.09.2009 / MOU - Q3 - 2009
33.2.4 / Review of the measures related to starting of commercial activities or activities of a self-employed person. Enhancement of the most efficient active employment measures, including consideration of opportunities to offer individuals to finish their training courses also after they have already found a job (amendments to Cabinet Regulations No.166 „Regulations on the procedure by which active employment measures and preventive measures aimed at reducing unemployment are organised and funded, and on the criteria for selection of those appointed for the implementation of the measures” of 10.03.2008) / Amendments submitted to the CoM / MoW / 01.07.2009 / LOI-32
33.3 / Measures aimed at ensuring coherence of the education and training system with the labour market requirements by implementing the policy of lifelong learning / MoES / LOI-32; MOU - Q4 - 2009
33.3.1 / Review of the Programme for the Implementation of the Lifelong Learning Policy Guidelines of 2007-2013 in the period of 2008-2010 upon consultations with the National Trilateral Council and by providing a detailed implementation mechanism; respective moves in order to implement the Programme and, in the framework of this Programme, to ensure strengthening of the skills and qualification demanded by the labour market / Programme approved by the CoM / MoES / 30.12.2009 / MoU – Q4 - 2009