Preconditions for Sustainability of Public Finance

The paper analyzes key fiscal policy issues within the context of enhancing sustainable public finance and economic growth. The aim of analysis was to identify major preconditions for sustainability of public finances and to initiate a discussion on them. As a positive aspect of fiscal sustainability in Latvia the existing budgetary situation with improving budget balance and low debt-to-GDP ratio could be mentioned. The main aspects and instruments of budgetary surveillance in the EU illustrating the Latvia’s experience are discussed in the paper. The proposals for Latvian policy makers are made for further planning and implementation of appropriate policies ensuring sustainable growth: to pay a greater focus on improvement of methodological aspects of structural budget balance as well as need of comprehensive and detailed analysis of all dimensions of the public finance quality framework