The Saeima has adopted and the President promulgated the following laws: the law on budget and financial management to make the law on budget and financial management (the Saeima of the Republic of Latvia and the Cabinet of Ministers rapporteur, 1994, no. 8; 1996; 1997, no. 24, no. 21; 1998, nr. 9; 1999, no. 24; 2001, nr. 1; 2002; 2003, 23, the No. 2, no 2, 2005; 24. no) the following amendments : 1. Replace the words "the whole law fiscal deficits" (fold) with the words "financial deficit" (the fold).
2. Chapter I: complement the explanation of the term "loans" before the words "legal persons" with the words "local authorities and other";
to complement the chapter after the term "appropriation" by the term "appropriation reserve" and its explanation in the following versions: "appropriation reserve — the annual State budget Act appropriation of part of the Cabinet of Ministers allocated under the annual State budget law contains.";
accompany the term "revenue" the clarification after ' (with tracking money) "with the words" as well as the proceeds from the transfer of received ";
to make the term "investment" and the explanation by the following: "investment — investment that aims to foster economic development, raising the level of public welfare, the improvement of infrastructure and environmental improvement."
to make the term "consolidated" and its explanation of the general budget by the following: "consolidated budget, national budget, the national special budget, local budget and local budgets, the special amount less the transfer.";
to complement the chapter after the term "consolidated budget" with the term "charge" and the explanation by the following: "the paid service — the full set of measures that the national budgetary authority external legal or statutory cases, carried out in return for payment, to ensure the needs of the public.";
to complement the general explanation of the term "" after the words "and other revenue" with the word "transfer";
to supplement the use of the term "special budget" for an explanation after the words "and other revenue" with the word "transfer";
exclude terms "subsidies" and "net lending" and their explanations;
to complement the chapter after the term "directly from the merchant funded" by the term "Transfer" and the explanation by the following: "Transfer: annual State budget act in particular highlight the transfer of budgetary resources, which can make one level — the State of the budget, the General State budget, local government special budget, local budget, special or between different levels of budgets. The recipient of the transfer payment budget funds received can be used both to cover both transfers below other transfer recipient. ";
replace the term "medium-term national budget planning" in the interpretation of the words "five years" with the words "medium-term";
to complement the chapter after the term "medium-term national budget planning" with the term "medium term" and the explanation by the following: "Average time-period of three years, consisting of the business year, which plans to the State budget, and then the following two financial years."
3. in article 5: to make a fifth by the following: "(5) the national budget in the financial balance means the difference between revenue and expenses. The State budget has financial surpluses if government financial balance is positive, or the State budget revenues are higher than the costs. The State budget has financial deficit, if the national budget in the financial balance is negative, or the State budget revenues are less than the expenses. ";
turn off the eighth;
Supplement to the twelfth article as follows: "(12) the cabinet shall determine any planned and accountable government institutions provide paid services."
4. Express article 8 the third paragraph as follows: "(3) the transfers from the General account to the special budget account is only allowed with the appropriation."
5. in article 9: adding to the fifth subparagraph of paragraph 1, after the words "foreign financial assistance" with the words "annual State budget execution process in transfer";
make the fifth subparagraph of paragraph 7 as follows: "7) European Union policy instruments for the implementation of the European agricultural guarantee fund measures arising from directly applicable European Union legislation.";
Add to sixth after the word "goals" with the words "except for State budget execution process the transfers associated with unexpected cases of funds usage";
to supplement the article with the seventh, eighth and ninth subparagraph by the following: "(7) the cabinet shall have the right to a Ministry or other central State administration in the annual State budget act in the framework of the appropriations to reallocate appropriations among programs, and expenditure programmes of economic classification codes.
(8) the annual State budget law contains conditions which cabinet followed, deciding on the seventh part of this article provides for the reallocation of appropriations and the appropriations for redistribution.
(9) the ministries and other Central Government institutions develop and Finance Ministry will assess requests for reallocation of appropriations between programs and expenditure programmes of economic classification code in accordance with the procedures laid down by the Cabinet. "
6. To supplement the law with article 9.1 of the following: ' article 9.1. Appropriation reserve (1) the annual State budget act in the appropriations for the Ministry by the reserve, other Central Government institutions and local authorities use the Cabinet.
(2) the annual State budget act in the appropriations for use of the reserve of the main provisions of this reserve and provides for a separate State in General.
(3) appropriations reserves the amount of medium-term approved by the Cabinet at the same time with the medium-term macroeconomic development and fiscal policy framework.
(4) the Cabinet of Ministers within the reserve the appropriations allocated ministries, other Central Government institutions and local authorities, but no more than the unused grant from the general revenue at the end of the previous year.
(5) the Cabinet of Ministers approved the appropriations for the year allocation of the reserve for the ministries, other Central Government institutions and local authorities through programmes, sub-programmes and the economic classification of expenditure codes. "
7. Express article 16 as follows: "article 16. Responsibility for the draft law to the State budget (the budget bill in the package) to the preparation of the Finance Minister is responsible for the annual State budget act in the project (the budget bill in the package), then the explanation and that medium-term macroeconomic development and fiscal policy framework. "
8. To supplement the law with 16.1 and 16.2 of the article as follows: "article 16.1. Medium-term budgetary objectives and priority directions of development of (1) the Ministry of finance in cooperation with the State Chancellery in the development of the next three financial years of the laws on the medium-term budgetary objectives and priority directions of development and the current year to February 28, submit it to the Cabinet for approval. This measure is designed keeping in the previous financial year, approved the medium-term macroeconomic development and fiscal policy framework.
(2) the Cabinet of Ministers until March 15 for the year shall be approved by the first paragraph of this article of the law. 
16.2 article. Medium-term macroeconomic development and fiscal policy framework in the development of (1) the Minister of finance, in cooperation with the Minister of the economy and in consultation with the Bank of Latvia every year until 15 April updated medium-term macroeconomic development and fiscal policy framework for the next three financial years and submit it to the Cabinet.
(2) medium-term macroeconomic development and fiscal policy framework: 1) medium-term national macroeconomic forecasts;
2) Government fiscal policy objectives in the medium-term;
3) Government budget revenue forecasts for the medium-term;
4) maximum total public spending in the medium-term;
5) State budget appropriations for reserves planned medium-term;
6) maximum permissible national budget the total level of expenditure for each Ministry and other central public authorities in the medium-term.
(3) the maximum permissible national budget expenditure in the medium-term and the total maximum permissible national budget expenditure the total amount for each Ministry and other Central Government institutions medium-term determined in accordance with the Cabinet of Ministers rules methodology, pursuant to article 19 of this law the fifth part.
(4) the Cabinet until May 1 of the current year to approve the medium-term macroeconomic development and fiscal policy framework.
(5) the Minister of finance until 5 may of the current year to inform the Parliament about the Cabinet approved a medium-term macroeconomic development and fiscal policy framework. "
9. Express article 17 as follows: 

"article 17. Budget request design fundamentals (1) the Minister of finance and the Cabinet Office until 5 may of the current year to approve the instruction on the preparation of the budget request.
(2) instruction on the development budget request guidelines include: 1) maximum permissible national budget expenditure the total amount for each Ministry and other central public authorities in the medium-term, according to the medium-term macroeconomic development and fiscal policy framework specified;
2) other financial restrictions, followed by the calculation of the budget;
3) summary of national macroeconomic development and fiscal policy in the medium term, according to the medium-term macroeconomic development and fiscal policy framework and legislative acts on the medium-term budgetary objectives and the priority development directions;
4) budget request and the development agenda;
5) instructions on the presentation of indicators;
6) used in the calculation of the budget indicators;
7) budget request forms;
8) another budget request the information necessary for development.
(3) the cabinet shall be determined according to the second subparagraph of this article, the budget request framework for development, the condition that the financial limits laid down in the instructions may not be reduced article 19 of this law in the fourth, fifth and sixth part of that budget institutions funded the budget autonomy and the approval process. "
10. in article 18: express the title and first paragraph as follows: "article 18. Budget request (1) the ministries and other central public authorities until 1 July for the year to develop and submit to the State Ministry of finance budget requests in accordance with the instructions of the development budget request. ";
Add to article 1.1 part as follows: "(11) the ministries and other Central Government institutions developed the national budget requests to the maximum amount of expenditure in the State budget."
11. Article 19: put the title as follows: "article 19. State budget request analysis ";
turn off the first part;
make the second paragraph as follows: "(2) the Minister of finance in the development of the annual national budget law, on the basis of the medium-term macroeconomic development and fiscal policy framework and budget request submitted pursuant to this law, in article 17 and 18 rules.";
replace the third paragraph, the words "in any State budget law project development stage is entitled to assess the" with the word "examine" and the word "require" — with the word "requests";
in the fifth subparagraph, replace the words "and State control" with the words "the State control and in the Office of the Ombudsman";
off the seventh part of the first sentence.
12. Article 20: make the third paragraph as follows: "(3) the Minister of finance to the current year's September 1, submitted to the Cabinet of Ministers a draft law on State budget (budgetary package), the explanations and clarification of the medium-term macroeconomic development and fiscal policy framework."
express the sixth part as follows: "(6) the Cabinet accepts the updated medium-term macroeconomic development and fiscal policy framework and submit it to the Parliament."
13. Article 21: replace the first paragraph, the words "guidelines" with the word "frame";
to make the second part of paragraph 6 by the following: "6) summary of national investment programmes for the implementation of the investment projects necessary means and sources of funding, the annual operating expenditure after completion of the project, as well as new investment projects that exceed the scope of the financial year, a summary of the expenditure required to complete the next few years;"
turn off the second part of paragraph 7 and 9;
replace the second part of paragraph 12, the words "at least five years" with the words "medium-term";
adding to the third paragraph after the word "project" with the words "and the medium-term macroeconomic development and fiscal policy framework";
turn off the fifth paragraph 8;
to supplement the article with the sixth part as follows: "(6) the appropriations provided for in the State budget for the financing of European Union funds for the implementation of the project, the annual State budget amendments by law may be redistributed for other purposes only with the Cabinet's decision, taken before the hearing of the draft amendments. This condition applies to the drafting of the amendment procedure of the Cabinet of Ministers. "
14. Replace article 22, paragraph 1, second subparagraph, the word "amount" with the word "volume".
15. Article 24: turn in the first paragraph, the words "with the mandate of the Minister of finance";
turn off the fourth paragraph, the words "the level of the actions and projects".
16. Add to article 25, second subparagraph, after the words "proposals for amendments to the annual State budget law" with the words "and the medium-term macroeconomic development and fiscal policy framework."
17. Replace article 26, first paragraph, the number and the word "the" in article 9, with numbers and the words "in article 9 and 9.1.
18. Add to article 31 of the fourth subparagraph by the following: "(4) the Ministry of finance prepares a report for the financial year of the Cabinet in the order and volume."
19. Add to article 34 of the third part as follows: "(3) the Treasury has the right to agree with the budget-funded institutions on the economic result acquired the cash-that are planned in the State budget and in the Treasury accounts."
20. Article 36: make the second paragraph as follows: "(2) the national budgetary authorities do not have the right to enter into financial leasing contracts and to take loans, where other laws provide otherwise.";
to supplement the article with the fourth paragraph as follows: "(4) public lending and service order is determined by the Cabinet of Ministers."
21. Supplement article 47 with 4.1 part as follows: "(41) if the European Union policy instruments in a timely manner the beneficiary did not submit reports on the implementation of the project, the Treasury cabinet order is entitled to suspend the appropriations on the basis of the policy instruments of the European Union participating in the management of the authority, which shall examine and approve the European policy instruments submitted by the beneficiary of the payment request."
22. transitional provisions: express the following in paragraph 16: "16. Article 5 of this law the tenth part of the Cabinet of Ministers referred to in the rules relating to the year 2007, the Cabinet of Ministers issued until 2007 1 April.";
transitional provisions be supplemented with 17, 18, 19, 20, 21, 22, 23, 24, 25 and 26 the following: "17. Article 5 of this law in the twelfth part of these provisions, the Cabinet of Ministers issued up to 1 November 2007.
18. This law, ninth part of article 9 the provisions referred to in the Cabinet of Ministers issued up to September 1, 2007.
19. Article 9.1 of this law the provisions referred to in the first paragraph, the Cabinet of Ministers issued up to September 1, 2007.
20. This law, the third paragraph of article 16.2 the provisions referred to in the Cabinet of Ministers issued up to March 1, 2007.
21. Article 31 of this law in the fourth part of the provisions referred to in the Cabinet of Ministers issued up to 30 June 2007.
22. Article 36 of this law in the fourth paragraph, these provisions, the Cabinet of Ministers issued up to June 1, 2007.
23. Article 47 of this law, the provisions referred to in paragraph 4.1, the Cabinet of Ministers issued up to 30 June 2007.
24. Article 9 of this law the seventh, eighth and ninth part shall enter into force on January 1, 2008.
25. Article 9.1 of this law shall enter into force on January 1, 2008.
26. Article 5 of this law in the twelfth part of the Cabinet of Ministers Regulations entry into force, but not longer than until 2007 December 31 apply to the Cabinet of Ministers of 6 May 1997, the instruction No 4 "procedure financed from the national budget authorities may provide paid services", in so far as it is not contrary to this Act. "
The law shall enter into force on 1 January 2007.
The Parliament adopted the law of 19 December 2006.
State v. President Vaira Vīķe-Freiberga in Riga, December 29, 2006, in the Editorial Note: the law shall enter into force by 1 January 2007.