Public auditor's suggestions can aid in deliberations for reducing government expenditures - Rinkevics (reworded)
In a bid to boost public sector efficiency and strengthen the country's fiscal sustainability, the Latvian government has proposed savings of EUR 150 million in the 2026 budget. This proposal is in line with the timetable for the 2026 budget, with the report set to be submitted to the Cabinet of Ministers by August 19.
The report, which will present spending cuts and reviews, is a result of discussions on the progress of the implementation of the State Audit Office's recommendations for the public administration. The main focus of these recommendations is on reducing administrative costs and implementing structural reforms to public procurement.
The State Audit Office recommends significant legislative changes and improved procurement management and planning. A clear, results-oriented policy for procurement is also suggested, with a focus on maximising value for money in public procurement. Other recommendations include reviewing and adjusting contract price thresholds, rules for exclusion of candidates and tenderers, and possibilities for centralizing procurement.
These reforms are expected to generate national savings in public sector spending ranging from 2% to 4%. The State Audit Office also calls for municipalities to streamline administrative violation cases, reviewing them individually to reduce time and save money over five years.
Furthermore, initiatives like automating and streamlining financial audit procedures through IT solutions have been presented by State Audit Office auditors, indicating a move towards more efficient and less bureaucratic processes.
President Edgars Rinkevics met with Auditor General Edgars Korcaginas at his Jurmala residence on Wednesday to discuss these matters. The President believes the conclusions and recommendations of the State Audit Office can be useful in discussions on saving budget expenditure and cutting red tape. The meeting focused on the State Audit Office's current activities.
The purpose of the proposed savings is to cut red tape and save governmental budget expenditures effectively. The State Audit Office's task is to provide an impartial, justified, and fair assessment of the use of state resources. This report is a significant step towards achieving that goal.
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