OREANDA-NEWS. October 29, 2009. The newest "DnB NORD Latvian barometer" reveals that the majority of the population believes - the state budget is drawn up chaotically, without going to the bottom of the needs of particular industries as well as completely ignoring all social needs.  Likewise, more than one half of the respondents are of opinion that the crisis in Latvia was caused by embezzlement from the state and lack of competence displayed by the state administration. In turn, the opinion about the development trends in Latvia has become even more critical as compared to the data of the last month, reported the press-centre of DnB NORD Banka.

By asking the standard monthly questions or indicators "DnB NORD Latvian barometer" has found out that by another two per cent points – down to 5% has dropped the number of people who believe that the overall development trends in Latvia follow the right direction; still the majority (85%) of respondents are convinced that the state has taken the wrong course, whereas 10% found it difficult to give an answer to the question. Just 2% of the population believe that the situation in economy currently is improving, though 28% reckon that it remains unchanged. Rather skeptical opinion voiced 67% of all respondents, who believe that the situation is getting worse.

"The results prove that people in Latvia have directly and on quite personal levels experienced the "three-way shock therapy" - simultaneous cut in income, discussions about new tax burdens and reduction of the scope of services provided by the state and municipalities," says the Vice-president of DnB NORD Banka, the Management Board member Ivars Kapitovics.

People have become more critical with regard to other issues as well; for instance, "DnB NORD Latvian barometer" has found out that mere 2% are willing to describe the financial standings of their families as good enough; 39% pointed out that the situation is moderate, whereas 58% indicated that it is rather bad or even very bad.

Over the last month considerably - by six pr cent points has grown number of respondents who are completely dissatisfied with the activities of the government. From among the respondents of "DnB NORD Latvian barometer" the above answer was chosen by 55%. Moreover, 37% of respondents said that they are rather dissatisfied, and just 5% consider themselves rather satisfied with the performance of the Cabinet. 

Part Two of "DnB NORD Latvian barometer" this time addressed the issues of the state budget, priority industries and preferred utilization of funds borrowed from international institutions.  

When asked about the way how, in their opinion, is drawn up the state budget, most frequently (37%) respondents chose the answer - chaotically, without going to the bottom of the needs of particular industries. In turn, 35% believe that the budget is drawn up, completely ignoring the social needs, and 27% stressed that the precondition is strict adherence to the requirements set by international lenders.

According to "DnB NORD Latvian barometer" the priority industries are health care (71%), economy (54%), as well as education (50%). Most rarely, or in just 2% of cases were mentioned industries like environmental protection, foreign affairs, or law.

When asked what in their opinion should be done in order to achieve better budget outturn than before, 47% said that should be increased the export capacity by supporting the manufacturers, and 44% responded that it is important to uproot the corruption. As it turned out, tax reduction was the third most popular answer chosen by 41%.

More than one half, or 59% of the respondents believe that the crisis in economy in Latvia was caused by embezzlement from the state, and precisely one half reckon that the reason lies in the lack of competence displayed by the state administration. Just the third most popular response (49% of votes) was - inconsiderate drawing up of the budget during the "fat" years. 

Within the framework of "DnB NORD Latvian barometer" 39% of respondents admit that in their opinion the borrowings from international institutions, including the International Monetary Fund and the European Commission are sheer waste, as the money will be squandered anyway. Mere 16% said that the loans were required, as otherwise Latvia would be bankrupt. As priority directions in utilization of funds people have mentioned solving of problems in areas like unemployment, education and health care.

"Let us stop to impose our bad sentiments accumulated over the last seven hundred years on people who want to save us from our own stupidity. External discipline is a factor that refines resolutions taken nowadays in Riga, and not the other way round. Besides, without international borrowings cut in income and increase of unemployment would only grow," says P. Strautins.

"DnB NORD Latvian barometer" also found out that currently 32% of people trust no politicians or economists. Yet 19% pointed out that they trust the words of the mayor of Ventspils Aivars Lembergs, 16% rely on Nils Usakovs, and 14% - on Vaira Vike-Freiberga.

"DnB NORD Latvian barometer" that meantime has become the most recognized monthly social survey in the country appears on monthly basis and is focusing on the hottest issues of the given period. Yet at the same time to the general public is addressed a list of regular questions, which month by month indicate changes in the general public sentiments.