Application of Methods to Assess Public Finance Sustainability in Latvia

The focus of this paper is based on the theoretical side of sustainability of public finances. In the paper, the theoretical framework of fiscal sustainability is analysed, including intertemporal budget constraint and assessment methods. The authors consider that the assessment of sustainability of public finances is a challenging task; nevertheless, Latvia needs an independent national assessment. Application of the methods of sustainability indicators and intertemporal net worth could be a good starting point for the first approximation in national assessment for Latvia