Skip to main content
European Commission logo
en
Strategy and policy
Reforms and Investments

Strengthening of medium-term expenditure framework and budget outcomes in Latvia

Supporting reforms to ensure efficient and effective revenue administration and public financial management

Funding Programme
Year
  • 2023

Strengthening of medium-term expenditure framework and budget outcomes in Latvia

The Commission provided support for the Budget Policy Department of the Ministry of Finance to reform the country’s public financial management process, with the purpose of strengthening the medium-term expenditure framework and budget outcomes in Latvia.

Context

The Project was linked to reforms in the context of the European Union's economic governance framework and to implementation of the Latvian Recovery and Resilience Plan. The general objective of the Project was to support Latvia’s efforts to implement reforms, which could encourage investment, increase competitiveness, and assist in achieving sustainable economic and social convergence, resilience and recovery. 

The expected impact is an improved budget implementation process that will contribute towards strengthening public financial management through increased fiscal discipline and expenditure control. The Project took account of data from the administration, and findings from previous support by the Commission.

Support to be delivered

The Project provided the authorities with guidance reports on

  • strengthening the medium-term approach to public spending
  • improving the efficiency of in-year budget execution by introducing a more flexible inyear re-allocation process
  • developing greater compliance with policy goals and fiscal constraints through performance budgeting
  • integrating government commitments on SOEs and pensions into the fiscal risk management framework
  • amending the public finance management legal framework to support the implementation of the proposed reforms. 

The support occurred over a 21-month period, commencing from July 2023. It included meetings and seminars with the Section Public Sector Borrowing Requirements and representatives from the administrations.

Results achieved

The Project resulted in a five guidance reports containing recommendations for reform, which were based on an analysis of on-going practice and priorities, for the Ministry of Finance to use in its work. The results added to the understanding of the issues involved in carrying out the anticipated reforms for an improved budget implementation process. The support enabled the Ministry of Finance to consider its potential next steps within the scope of its mandate.

More about the project

You can read the documents related to the project here: