The Economy Must Be Frugal: Latvia's Ministry of Finance Prepares for Mass Layoffs and Office Closures 0

Politics
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Министр финансов Ашераднес досиживает в своем кресле последние месяцы.
Photo: LETA

The staffing resource of the bureaucracy remains a hot topic in our public space. In this regard, various figures are mentioned, including fantastic ones.

The frugal Ministry of Finance announced large-scale layoffs in a presentation to the Saeima Budget and Finance (Tax) Committee.

The Ministry of Finance proposes the following breakdown: there were 4,487 employees under its purview for 2024, which increased to 4,523 in 2025, but a sharp reduction to 3,849 is planned for 2026. This means that 638 workers at the Ministry of Finance will lose their jobs over two years.

By the way, Minister Asharaden is also likely to leave the Ministry—political analysts predict that the Silin government is living its last months, and there may not be a place for the former commercial director of the Diena newspaper in the new Cabinet of Ministers.

Regardless, the most radical reduction is intended to be implemented in the State Revenue Service: the staff will be reduced by 850 positions, with 468 simply being laid off or vacant positions being eliminated (there were 225 such positions in 2025!), while 382 employees of the Tax and Customs Police will be transferred to the Ministry of Interior.

The overwhelming majority of layoffs in the State Revenue Service fall into the category of "support functions." That is, most likely, the agency will no longer need to maintain, for example, cleaners, paying them not only salaries but also social taxes—due to optimization, cleaning services will be ordered externally.

On the other hand, the staff of the State Treasury is expected to increase by 175 employees next year, as the functions of other ministries involved in accounting will be transferred to this agency. By 2026, centralized accounting will be performed for 67% of other agencies. The Ministry of Finance, through the State Treasury, will take on these tasks, while the total number of accountants will ultimately decrease by 27%.

As noted, the budget cuts also include office space. Here, it should be noted that the Ministry of Finance operates quite spaciously—there are 10.6 square meters per employee, which means a full office! Therefore, in 2026, the area will be cut by 11,413 square meters. This is equivalent to two football fields currently filled with employees of various sizes.

In any case, the Ministry of Finance will retain the classic building from the late 1930s at 1 Smilšu Street (with an area of 16,029 square meters) and the 21st-century building of the State Revenue Service at 1 Talejas Street (19,752 square meters).

Regarding the future of the fiscal agency, the Ministry of Finance also hints at "optimizing the organizational structure and consolidating functions"; "targeted oversight and data analytics—focusing on the largest risks and high-yield activities." Consequently, the hunt for tax evaders will primarily target large businesses.

But the average person should not relax—after all, we all have to service the national debt!

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