“Support for reforms in budget and finance policy fields” European Social Fund Project “Support for reforms in budget and finance policy fields” No 1DP/1.5.1.1.1/10/IPIA/CFLA/003/001 INVESTING IN YOUR FUTURE!

Total project funding Ls 1 412 534 (~2 mln EUR)

European Social Fund project Goal – support and facilitate reforms in policies administered by the MoF […] fiscal, state budget, tax (tax administration), finance management, government debt management and financial market policies that would allow renewing of economic stability and sustainable economic growth.

Achievement of project goals Results by September 2011: general training (diverse topics): 174 out of 301 outsourced policy assessments: 3 incl. concept paper on development banking policy selected improvements to tools and infrastructure MATLAB software, QMS e-view software, access to selected databases of international macroeconomic indicators (Reuters, Bloomberg) improvement of monitoring and analysis of tax arrears in SRS IT systems selected measures to improve general capacity at MoF implementation of time-sheet system with a goal to assess consumption of resources by specific functions Assessment of competencies for 36 leading managers of MoF

Project breakdown by activities

Project breakdown by *TYPE* of activities as of September 2011

Breakdown of project activities by institutions

Project implementation chart

Project implementation Funding acquired (by 31.08.2011) - Ls 390 171 or 28 % of total project funding: incl. : in 2010 Ls 169 545 in 2011 Ls 220 626 Plan for 2011 Ls 587 120 - acquired (by 31.08.2011) Ls 220 626 or 38 % of the funding for 2011.

1. Improving analytical skills in the public finance management and macroeconomic analysis fields achievements Topic Planned result Achieved result Training 301 174 Expert reports 9 3

1. Improving analytical skills in the public finance management and macroeconomic analysis fields training Topic Planned result Achieved result Economic analysis, fiscal policy, state budget and public finance management policy 119 44 Medium-term budget planning and relation with ESA95 16 2 Accounting methodology 20 13 Government debt and asset management 64 36 State aid 4 Improving internal auditing system in the public administration 62 Making financial market policy 12

1. Improving analytical skills in the public finance management and macroeconomic analysis fields expert reports Topic Planned result Achieved result Research on possible improvement, development and future solutions of the IS 1 Concept on improving efficiency of overall administrative expenditure in direct public administration institutions Drafting a concept on the development of financial markets to optimize financial institutions

2. Building infrastructural capacity in the public finance and macroeconomic analysis fields Topic Planned result Achieved result Purchase of MATLAB software 2 Purchase of subscriptions for international economic information databases 1 Purchase of licences for QMS eViews software tools 7

3. Building analytical and infrastructural capacity in tax and customs revenue administration fields training Topic Planned result Achieved result Improving tax and customs revenue analysis 3 Improving debt administration 5 Improving operative analysis of financial crimes Tax policy and administration 7 6

3. Building analytical and infrastructural capacity in tax and customs revenue administration fields Topic Planned result Achieved result Seminar-conference on causes of the shadow economy in Latvia 1 Expert opinion on proposals developed by the shadow economy combating working group Development of TIS functional module “Tax debt breakdown by the time of occurrence”

5. Improving overall capacity of the Ministry of Finance Topic Planned result Achieved result Development of the human resources workload registration module 1 Competences of managing officials of the Ministry have been evaluated 1 report (36 employees)

Planned results of the project In the 2nd half of 2011 - procurements of studies initiated in the public sector wage policy sector and tax debt administration improving sector. 2. To continue staff training: in public finance management and macroeconomic analysis field; tax and customs revenue administration field; wage policy field; to strengthen overall capacity in the Ministry of Finance. 3. In 2012 – to organize a conference in the public finance management and macroeconomic analysis field. 4. In 2012 – to develop and update information systems, as well as train staff in the public finance management and macroeconomic analysis field. 5. In 2012 carry out studies in the public finance management and macroeconomic analysis field.