"Surprisingly, and I was surprised by it too, our reduction in expenditure in the basic budget is almost precisely compensated by the increase in expenditure in the social budget. So the reduction and all that we have done with our combined efforts last year and this year has reduced the basic state budget, that is, the expenditures for state administration and related spending. But purely by chance, the social expenditures have grown by the same amount," Repše told the TV3 reporters.
What a surprise, especially for a Finance Minister one would expect to know a little economics! And didn't he say that that any downward spiral of tax revenues and rising social costs had been taken into account when making drastic budget cuts? So we only seem to have cut LVL 500 million and are back to square one. What else will surprise the Finance Minister next?