The concept of the state fiscal policy is developed by the Ministry of Finance and the Ministry of Economics. The State Revenue Service (hereinafter - SRS) is the administrative body carrying out the fiscal policy in Latvia. Ensuring of tax revenue is the main operational task of the SRS. Based on the consideration that the tax revenue plan for the regions is drafted correctly, i.e. by taking into account the macroeconomic situation in the country and the research contains calculations of the regional budget revenue plan performance indicators which prove that the regional tax revenue planning method is efficient thus efficient tax administration is one of the main factors influencing tax revenue. Considerable part of the research is devoted to the role of the SRS and its operation in order to improve the tax administration efficiency. Polls concerning satisfaction of the SRS clients are carried out for this purpose. By evaluating the poll results it has been stated that by organising seminars for taxpayers the specific character of business in any particular region should be taken into account. It would be useful to organise thematic seminars about applying taxes in specific business areas. In Kurzeme region and Riga it would be efficient to organise seminars on applying of taxes for businesses dealing with international transportation by sea and businesses supplying goods and rendering services for ships which are used for navigation in international waters.

Nowadays ICT has a significant role in public administration by creating opportunities to automate a lot of manual operations. ICT plays an important role both in improving customer service in public administrations as well as internal and inter-institutional co-operation processes in public administrations that promote access to services and service quality, facilitate administrative processes for citizens and businesses and contribute to the accessibility of information. Public authority daily faces a major challenge – on the one hand to reduce labour costs and on the other hand to introduce innovations. In the implementation of both these objectives public administrations deal with a serious problem – to operate in a connected environment by involving stakeholders and at the same time to solve problems by using new working methods, tools and management models. One of the strategic objectives of tax and customs administrations is to increase resource use efficiency and effectiveness; therefore, they continuously search solutions to simplify administrative procedures, to improve and develop the quality of services provided and the business environment in general, and how to automate internal work processes and significantly reduce manual workload. This study aims to examine the structure affecting the efficiency indicators, to point out the factors which have the biggest impact on increasing effectiveness of institutions.

The research paper summarizes the results of the influencing factors of small and medium enterprises development: government's policy, access to short and long term financing with reasonable interest rate, investments, tax system, geographical environment, business environment and infrastructure, experience and knowledge. Most of all the small and medium enterprises development is influenced by the investments but also other factors have very significant role.