Translated using ChatGPT service.
To promote more efficient use of state budget funds and reduce the administrative burden on residents and businesses, the Ministry of Economics has developed proposals for expenditure optimization, with a total potential saving exceeding 9.5 million euros.
"Currently, while working on the 2026 state budget, we are carefully assessing every expenditure item. The goal is not only to save, but primarily to ensure that available resources are used as efficiently as possible," emphasizes Minister of Economics Viktors Valainis. "We are maintaining support for entrepreneurs, as business development is the foundation of Latvia’s economic growth. At the same time, we are reviewing support programs for households, such as in the electricity sector, to make assistance more targeted and reach the families who need it the most. We have also decided to optimize the Ministry of Economics' resources by reducing the number of positions by 40."
During this budget planning process, the Ministry of Economics has identified ways to reduce expenditures in 2026 by 9.5 million euros, while maintaining full support programs for businesses. This specific budgeting approach represents a complete shift in mindset – activities will be evaluated solely based on results, not by functions. Key performance indicators will be export growth and an increase in private investment, as outlined in the economic development plan – 3.7 billion euros annually.
The new expenditure optimization proposals cover three main directions:
First, administrative process review within the Ministry of Economics’ jurisdiction. Planned optimization includes reduced spending on compensation, travel, ICT solutions, and operational services. Options are being considered to eliminate certain statistical reports, reduce the volume of training and informational events, and decrease contributions to international organizations by withdrawing from the International Bureau of Weights and Measures. The total projected savings in this area exceed 1.2 million euros. Efforts will also focus on reducing internal administrative functions, including the planned reduction of approximately 40 positions in the Ministry’s structure.
Second, process improvement in oversight and administration of business support programs. This involves reviewing current processes and reducing associated costs within the Ministry's scope. At the same time, by reassessing the effectiveness of support measures, the Ministry will retain programs with direct benefits for entrepreneurs. The expected savings in this area exceed 3.2 million euros.
Third, the introduction of a more targeted electricity support mechanism for large families. Currently, support is provided regardless of household income, meaning some recipients receive insufficient help, while others get unnecessary aid. The new proposal aims to make the support more targeted, potentially doubling the assistance for lower-income families while enabling savings of up to 5 million euros in the state budget. The goal is to ensure electricity users receive help only when truly needed, rather than applying indiscriminate support as seen during the COVID-19 crisis.
To further promote efficient use of public resources and reduce administrative burdens, the Ministry of Economics has already implemented several significant initiatives. The Ministry and its subordinate institutions – including the Consumer Rights Protection Centre, the Competition Council, and the Central Statistical Bureau – plan to relocate to a shared office complex at Talejas Street 1 in Riga within the next year. This move is expected to reduce administrative costs in the long term.
The Ministry has also taken concrete steps to reduce construction-related bureaucracy and simplify processes for businesses and residents. Legislative amendments have been made to shorten approval times for construction projects and technical regulations, and public participation procedures in the construction process have been simplified. Eased requirements have been introduced for private house construction, and exceptions have been established allowing co-owned buildings to be put into operation without the consent of all owners. Additionally, the Construction Information System (BIS) has been improved to ensure more convenient document flow and transparency.
Moreover, bureaucratic reduction measures have been introduced in the management of state-owned enterprises. A significant step toward more efficient use of budget funds is the merger of nine state-owned companies, one of the largest state enterprise restructuring projects in recent years. This initiative will help reduce government spending, eliminate duplication of functions, and lessen administrative burdens. In the first phase, three companies – the Latvian National Metrology Centre, Latvian Standards, and the Assay Office – will be merged into a unified Technology Development Centre focused on conformity assessment, quality assurance, and technical compliance. In the next phase, additional laboratory and technical expertise units will be consolidated from various institutions, including the Latvian Environment, Geology and Meteorology Centre, Road Competence Centre, Sadales tīkls, Augstsprieguma tīkls, Riga International Airport, and Latvijas Valsts Meži. This will create a unified, professional support platform with clearly defined competencies and efficient resource use.
Additionally, by removing the previous requirement for regular re-verification of water consumption meters, annual household expenses are expected to decrease by approximately five million euros. This decision is based on a cost-benefit assessment.
The proposals developed by the Ministry of Economics will be submitted for further review and evaluation by the government.