This document discusses fiscal policy and risk management in Latvia. It outlines Latvia's fiscal policy strategy of maintaining a balanced budget over the economic cycle and a structural budget deficit of no more than 0.5% of GDP in the long term. It also discusses Latvia's fiscal rules established in the Law on Fiscal Discipline, which govern expenditure growth and structural budget balances. Finally, it describes Latvia's process for general management of fiscal risks, including a required declaration of fiscal risks submitted with the annual budget and oversight by the independent Fiscal Discipline Council.