OECD Economic Surveys: Latvia 2015
Hide / Show Abstract

OECD Economic Surveys: Latvia 2015

This OECD Economic Survey of Latvia examines recent economic developments, policies and prospects. Special chapters cover improving public sector efficiency and raising productivity.

Click to Access: 
    http://oecd.metastore.ingenta.com/content/1015041e.pdf
  • PDF
  • http://oecd.metastore.ingenta.com/content/102015041f1.epub
  • ePUB
  • http://www.keepeek.com/Digital-Asset-Management/oecd/economics/oecd-economic-surveys-latvia-2015_9789264228467-en
  • READ
 
Chapter
 

Improving public sector efficiency for more inclusive growth You do not have access to this content

English
Click to Access: 
    http://oecd.metastore.ingenta.com/content/1015041ec005.pdf
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/economics/oecd-economic-surveys-latvia-2015/improving-public-sector-efficiency-for-more-inclusive-growth_eco_surveys-lva-2015-5-en
  • READ
Author(s):
OECD

Hide / Show Abstract

Improving public sector efficiency is a priority in a catching-up and ageing economy such as Latvia, where spending needs are large. Ensuring that spending allocated to core services (e.g. education, healthcare) is adequate to achieve convergence of policy outcomes to OECD upper standards is challenging. Efficiency gains in the tax system could bring additional revenues. The tax base should be expanded by reducing informality, strengthening tax administration and increasing property and environmentally related taxes, which are low by international standards. To reduce unemployment and income inequality, the tax-benefit system should also be revised as it is now relatively regressive and the tax wedge on low-income earners is high. Enhancing analytical, monitoring and assessment capacities should help to rein in wasteful expenditure and improve the prioritisation of spending. The reform of human resource management, public procurement, and state-local relations is also needed to deliver higher-quality and more cost-efficient public services.

Also available in French
 
Visit the OECD web site