As part of a review of administrative processes, the Ministry of Economics (EM) plans to reduce the number of employees by 40 positions, optimizing expenses for remuneration, business trips, information and communication technology solutions, as well as maintenance services, according to the ministry.
EM has developed proposals with a total expected savings of approximately 9.5 million euros.
It is planned to abandon certain statistical reports, review the scope of training and information events, as well as evaluate expenses related to participation in international organizations, including withdrawing from the International Bureau of Weights and Measures. The total savings in this area are projected to exceed 1.2 million euros, according to the EM.
At the same time, to promote more efficient use of state resources and reduce the administrative burden on residents, EM has already implemented several initiatives. The ministry and its subordinate institutions, including the Consumer Rights Protection Centre, the Competition Council, and the Central Statistical Bureau, plan to relocate in the coming years to a shared office complex on Talejas Street 1 in Riga, which will allow for long-term reductions in administrative expenses.
The ministry has carried out several actions to reduce construction bureaucracy and simplify processes
for entrepreneurs and residents. Amendments to regulations have been made, shortening the deadlines for project approval and the issuance of technical specifications, as well as simplifying public involvement in the construction process.
Facilitations have been introduced for private house construction, and exceptions have been set in which the commissioning of buildings in joint ownership no longer requires the consent of all owners. The Construction Information System (BIS) has also been improved, ensuring more convenient document circulation and transparency of processes, EM notes.
EM reports that, in order to use budget resources more effectively, it has also implemented the merger of nine capital companies under its supervision, which is one of the largest state capital company restructuring projects in recent years. This initiative will reduce state budget expenses, eliminate duplication of functions, and ease the administrative burden.
In the first phase, three state-owned enterprises – the “Latvian National Metrology Centre,” “Latvian Standards,” and the “Latvian Assay Office” – will be merged to create a single technology development centre, whose main tasks will be conformity assessment, quality assurance, and technical compliance.
In the next phase, the consolidation of several laboratories and technical expertise units operating in various state institutions is planned,
including in the Latvian Environment, Geology and Meteorology Centre, the Road Competence Centre, AS “Sadales tīkls,” AS “Augstsprieguma tīkls,” Riga International Airport, and AS “Latvijas valsts meži.” This will create a unified, professional support platform with clear division of competences and efficient use of resources, the ministry adds.
Also, by abolishing the current requirement for regular re-verification of water consumption meters, the annual expenses for residents will be reduced by approximately five million euros. The decision was made based on a cost-benefit assessment.
Considering the importance of business support programs, EM emphasizes that support for entrepreneurs will not be reduced. It is planned to maintain support for programs such as export promotion, investment attraction, energy efficiency enhancement, and other initiatives directly benefiting Latvian businesses.
At the same time, the organization of investment missions, the volume of in-person consulting services, the number of campaigns and foreign visits, the costs of social media content creation, including the maintenance of “latvia.travel,” the organization of tour operator visits to Latvia, market research activities, and Latvia’s international communication campaigns abroad will be reviewed.
In this area, savings of more than 3.2 million euros are expected.
EM also states that to make the electricity support mechanism more targeted, it plans to change the current support approach for large families, taking into account their actual income. At present, support is provided regardless of family income, meaning that for some recipients it is insufficient, while for others – insignificant.
The new approach aims to provide greater support to those families who need it most, increasing the amount of support by up to two times. At the same time, such changes would allow for savings of up to five million euros.
EM notes that it continues working on further solutions that would enable more economical use of the state budget while maintaining support for development in the most important areas of the national economy.
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