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.

Currently one of the hottest local governments’ issues on the agenda of the government of Latvia is the elaboration of new improved local government finance equalization system, which is an important integral element of the implementation of regional development policy. Local government finance equalization is affecting development capacity of any territory, including rural territories. The purpose of the article is to highlight and discuss in academic society the finance equalization issues that affect the rural municipalities and work out proposals for the new system. The study does not cover all local government finance equalization system’s elements, but gives attention to three – importance of the equalization for rural local governments – municipalities (novads); revenue sources, that are necessary to include in the equalization system; criteria for calculation of local governments’ expenditure needs.