The number of government ministries is expected to be reduced next year, with specific changes to be announced this weekend, Prime Minister and prospective head of the next government Andris Kulbergs (United List) said in an interview with TV3’s 900 sekundes programme.
Kulbergs did not specify which ministries would be abolished or how many ministers would serve in his new government, promising to reveal the details over the weekend.
At the same time, the Prime Minister emphasised that reducing the number of ministries does not automatically generate savings. Expenditure can be reduced by consolidating office premises, lowering maintenance costs and reviewing administrative expenses.
Kulbergs identified reducing the number of ministries as one of the measures planned for implementation next year.
Other planned measures include cutting state funding for political parties, reducing compensation payments to members of the Saeima and eliminating representation expenses.
According to Kulbergs,
approximately one-third of the total potential savings could be achieved within public administration.
He highlighted the need to review procurement procedures, the number of public sector employees and the duplication of functions across institutions.
As examples, the Prime Minister pointed to the fragmented management of state-owned real estate and the administration of European Union (EU) funds by multiple institutions.
In his view, these functions could be centralised.
Kulbergs acknowledged that the changes could not be fully implemented by 1 January. Work on the reforms should begin next year, with their financial impact materialising over the following four years.
Discussing compensation payments to MPs, the Prime Minister stressed that the decision must be made by the Saeima, but United List would submit a specific proposal.
The proposal would introduce a fixed monthly allowance for MPs living farther from Riga, eliminating the requirement to justify expenses with receipts.
Kulbergs did not specify the proposed allowance amount.
He also promised to suspend automatic salary increases from 1 January, referring to both MPs and state-owned companies.
The Prime Minister also expressed his intention to eliminate additional allowances and bonuses.
Kulbergs stressed that new proposals should no longer be approved without identified funding sources.
Asked whether next year’s state budget would include so-called parliamentary quotas, or discretionary funding allocations proposed by MPs, he replied that it would not.
The government also plans to review the allocation of EU funds, prioritising measures that promote economic growth.
The Prime Minister acknowledged that reducing public administration expenditure alone would not be sufficient.
The government would also need to review the functions performed by the state, as well as various benefits and exemptions.
Specific solutions would be discussed with the public, trade unions, employers and other organisations involved.
Kulbergs noted that the changes would affect every resident in some way.
As previously reported, during government formation talks, Kulbergs had already proposed reducing expenditure on politicians and public administration, including reviewing the functions of ministries and state funding for political parties.
He has emphasised the need for strict financial discipline in the next government’s work and for avoiding decisions without clearly identified sources of funding.