Latvia's 2016 budget will be based on the assumption that the Baltic country's economy will grow by 3 percent next year, Finance Minister Janis Reirs told journalists following a meeting with President Raimonds Vejonis on Wednesday.

The meeting between Reirs and Vejonis focused on various issues concerning work on next year's budget. The finance minister briefed the president on the budget drafting timetable and a workgroup formed by the centre-right coalition for drawing up the 2016 budget.

The workgroup is due to convene for its first meeting this Thursday, Aug. 6.

"We will include a 3 percent growth forecast for next year, the budget deficit will be 1 percent and inflation is projected at 2 percent," said Reirs.

According to Latvia's GDP growth forecast, which has been approved by the Economics Ministry and the Bank of Latvia, the country's economy is expected to expand by 2.1 percent this year, 3 percent next year, and 3.6 percent annually in 2017 and 2018.

Reirs noted that the main budget priorities would include national security, as well as reforms in the education and health care sectors.

There is also a plan to raise pensions, starting with the smallest ones, to make up for the pension cuts made during the economic crisis.