- PM Evika Siliņa calls for a slowdown in salary growth within public administration, starting with politicians’ salaries.
- Plans include reviewing and potentially centralizing public service functions and merging institutions.
- Siliņa mentions the need for better management in ongoing tax reforms and clarifies that VAT rates will remain unchanged.
Prime Minister Evika Siliņa has called for a deceleration in salary increases across the public administration sector, beginning with the salaries of politicians themselves. This move is part of a broader strategy to review and potentially curb overall public administration spending.
Siliņa emphasized that any adjustments would start with politicians and might involve centralizing functions and merging institutions to improve efficiency.
PM Siliņa Proposes Public Sector Salary Freeze and Administrative Overhaul
Siliņa also discussed potential measures to streamline public administration, such as centralizing various functions and merging institutions to enhance efficiency. This approach could help in reducing overall spending without resorting to staff cuts, which Siliņa wants to avoid. These changes are anticipated to have significant impacts on the economic sector and public service operations.
On the subject of tax reform, the Prime Minister admitted that the process has not been managed as effectively as it could have been. She acknowledged that there is room for improvement in how the reform is being carried out. Despite these challenges, Siliņa assured that VAT rates would remain stable, reflecting the coalition’s internal consensus.
The review and potential restructuring of public administration spending, including the examination of salary increases and institutional efficiency, are set to be focal points in the upcoming policy adjustments. These steps are expected to address both fiscal responsibility and administrative effectiveness.
“Salary rise in public administration need to be slowed down, starting with politicians’ own salaries,” – Prime Minister Evika Siliņa.
