Latvia reports €100 million surge in state ICT spending, urges oversight

The Ministry of Intelligent Administration and Regional Development (VARAM) reports that the total value of state and municipal information and communication technology (ICT) procurement is projected to reach €277.65 million in 2025, an increase of €102.46 million (58.5%) over the previous year. In 2024, ICT purchases amounted to €175.19 million, representing 6% of all public procurement; the share rose to 9.24% in 2025. State‑budget spending on IT services is estimated at €103 million for 2025.

VARAM identifies several systemic problems: low competition in tenders, insufficient specialist capacity within public administration, fragmented project management, heavy reliance on external providers, and a lack of transparent justification and reporting of ICT projects. To address these issues, the ministry proposes three main reforms: expanding VARAM’s mandate with a unified project‑benefit assessment framework, centralized risk monitoring and a transparent investment portfolio; consolidating state ICT support functions into competence‑center structures; and revising procurement rules to broaden competition, including an EU‑level e‑procurement catalogue review. A 2026 survey of agencies indicated that ministries continue to plan, coordinate and monitor ICT projects independently, limiting overall coordination and public‑fund efficiency.