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The State Audit Office of Latvia concluded after the audit that the incentives granted by local and regional governments (e.g. allowances, compensations, discounts, co-financing) were very diverse and costly for local and regional governments. They are often not sufficiently justified, do not achieve the intended goals or are not proportionate to the costs of administration, and it is not always clear whether the specific incentive is really necessary. The Single Information System for Incentives (SISI), which is mandatory for local and regional governments and which the Ministry of Smart Administration and Regional Development (MSARD) intended as a solution for administering incentives and informing population, is currently not fully usable. Its implementation requires technical solutions that require financial investments from local and regional governments, which they currently do not have. In addition, the system is not adapted to the diversity of incentives and different administrative practices.
