The State Audit Office (SAO) will urge the Saeima to forego the application of base monthly salary indexation for the Auditor General and members of the SAO Council in 2026, as currently stipulated by the Law on Remuneration of Officials and Employees of State and Local Government Institutions, according to information obtained by BNN.
The SAO has informed the Ministry of Finance and the Saeima Budget and Finance (Taxation) Committee of this decision.
Freezing the salaries of the Auditor General and Council members would allow the SAO to reduce next year’s remuneration expenditures by 36,380 euros.
Auditor General Edgars Korčagins explained that the SAO aims to lead by example, emphasizing that it not only demands and expects responsible action from others, but practices it internally first. “At a time when the state is undergoing a general review of budget expenditures, this is a deliberate and responsible decision, part of our consistent approach – to regularly review our costs, identify savings opportunities, and act in the interest of the state,” Korčagins stated.
He added that
expenditure reviews should not be one-off campaigns, but a systematic and integral part of the daily operations of public administration.
The total SAO budget for 2025 is 8.3 million euros, of which nearly 90% is allocated for remuneration, according to SAO representative Majors.
“The implementation of SAO recommendations in audits has delivered measurable monetary benefits. The financial return achieved in 2024 was 1:4.75, meaning that for every euro spent on ensuring the SAO’s operations, the work has generated 4.75 euros in return,” the office told BNN.
The SAO also stresses that its recommendations provide intangible benefits to society, such as ensuring equal access to social support in certain life situations regardless of the municipality of residence.
Sectoral ministries were required to submit proposals for reducing expenditures by 150 million euros by the 30th of June.
Minister of Finance Arvils Ašeradens (New Unity) informed Prime Minister Evika Siliņa (New Unity) that the ministries have fulfilled the government’s task by submitting a total of 250 expenditure reduction proposals to improve public sector efficiency, strengthen fiscal resilience, and reduce administrative costs.
The Ministry of Finance reports that the proposals from ministries include reductions in remuneration, subsidies, goods and services, as well as other expenditures.
According to the 2026 budget development schedule, the informative report on expenditure cuts and reviews will be submitted to the Cabinet of Ministers by the 19th of August.
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