Latvia's State Audit Office proposes budget increases and Saeima oversight

The Latvian State Audit Office has proposed measures to increase the state budget by at least 190 million euros through enhanced revenue collection and expenditure efficiency. Key recommendations include redirecting at least 135 million euros from the free financial resources of 'Latvijas valsts meži' to the state budget as additional dividends, and securing at least 50 million euros by accounting for repaid state funding from 'Altum' Covid-19 programs.

To reduce costs, auditors suggest narrowing the circle of officials eligible for service pensions after dismissal, which could save 10 million euros. They also recommend evaluating the efficiency of over 200 tax reliefs, which currently result in at least 2.5 billion euros in lost annual revenue, and revising work permit conditions for foreign labor to generate an additional 5 million euros in taxes.

In a separate legislative move, the Saeima's State Administration and Local Government Committee has decided to advance a bill that would grant the State Audit Office the right to conduct financial audits of the Saeima's annual reports. Currently, the parliament is the only state institution exempt from such high-level financial oversight. The proposed amendment aims to strengthen transparency and ensure the Saeima's budget usage is audited under the same principles as other state institutions, while maintaining the parliament's constitutional independence by limiting audits to financial accuracy rather than utility or compliance.