While the Latvian government is searching for ways to reduce public spending, the replacement of Prime Minister Evika Siliņa (New Unity) by Andris Kulbergs (United List) will cost taxpayers more than half a million euros in severance payments and compensation, according to a draft order prepared by the State Chancellery.
The State Chancellery has drafted a proposal to allocate funding from the state budget programme “Funds for Unforeseen Events” to cover severance payments and compensation for unused annual leave for members of the Cabinet of Ministers, employees of the Prime Minister’s Office, ministerial advisers and parliamentary secretaries who lost their positions following the change of government.
In total, 509,405 euros will be required to meet these obligations. Of this amount, 208,525 euros will be allocated to the State Chancellery, while the Ministry of Defence will receive 52,262 euros, the Ministry of Smart Administration and Regional Development 30,084 euros, the Ministry of Culture 38,123 euros, the Ministry of Transport 35,469 euros, the Ministry of Climate and Energy 49,293 euros, the Ministry of Justice 42,726 euros, and the Ministry of Education and Science 52,923 euros.
The funding will be drawn from the state budget reserve for unforeseen expenditures to ensure that all statutory severance payments and compensation for unused leave resulting from the government transition are paid in full.
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