Government austerity measures do not limit bonuses and cash awards in Latvian state institutions
Latvia's recent budget-saving decisions do not cover bonuses, cash awards or supplements. In previous years such payments have been considerably larger at the end of the year than earlier in it.
The Latvian government and the prime minister have recently adopted decisions to cut state budget spending in this year's quarter. These decisions place no limits on additional remuneration, meaning bonuses, cash awards and supplements in public administration. This matters because experience from previous years shows that such payments are considerably larger in the final months of the year than at other times.
How this year's total looks
Data compiled by the public broadcaster LSM show that the total for additional remuneration in the first three quarters of this year is smaller than last year. However, some ministries and institutions have already exceeded last year's level of such payments within this period. The overall decrease therefore does not describe the situation equally across all institutions.
Open questions
Several questions remain unanswered. One concerns systemic inequality between different sectors and institutions, where the scale of additional payments differs. The other is whether year-end payouts are proportionate, at a time when the government is calling for savings in the state budget.
Because there is no restriction on this type of spending, the sums paid out at the end of the year will depend on the decisions of each ministry and institution.
