Latvia aims to boost tax revenues for increased defense and social investments.
The Latvia Tax Review was done to help the government increase tax revenues by 3% of GDP to reach a target of 33%. This extra money will be used for defense spending and investments in health, education, and social protection. The goal is to meet NATO's guideline of spending 2% of GDP on defense by 2018. Public health spending is low in Latvia, and health outcomes are not as good as in other European countries.