Latvia plans to find 70 million lati ($132 million) in savings in the 2013 budget, equivalent to about 0.5 percent of gross domestic product, said Prime Minister Valdis Dombrovskis.
The savings will come from “economic growth and restricting increases in spending,” Dombrovskis said today on the Latvijas Radio program Krustpunkts.
The Baltic country passed spending cuts and tax increases of almost 18 percent after taking a 7.5 billion-euro ($9.9 billion) loan from a group led by the European Commission and the International Monetary Fund in late 2008. Latvia completed the program in December and plans to adopt the euro in 2014 after posting a budget deficit of about 2.5 percent of GDP this year.
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