As of 2012, political parties in Latvia will be partly funded from the national budget in line with amendments passed to the Law on the Financing of Political Organizations (Parties) on 10 June 2010. Public funding will be granted to those political parties that won more than 2 percent of votes in the last parliamentarian elections. The eligible political parties will receive LVL 0.50 (EUR 0.71) annually per vote received.
The public funding will be paid out in 4 payments and the first one was made by 15 January. Therefore in January 2012 five political parties meeting the requirement have already received public funding: Harmony Center - Ls 32 491,25; Zatlers Reform Party - Ls 23 857; Unity – Ls 21 570,37; National Alliance – Ls 15 901; the Greens and Farmers Union – Ls 13 994,62. In regard to one political party -„LPP/LC” the decision was taken not to assign public funding as the political party has dissolved its activities.
The parties can use the public funding for rent, communications services, wages, audit services, research and educational initiatives, as well as for publishing books and booklets and for election campaigns.
Public funding can be denied to a political party if it has committed the following infringements of the law:
- for exceeding the legal campaign spending limit by more than 10 percent;
- has failed to declare transactions or donations exceeding 100 minimum wages;
- or in accordance with the Criminal Law special coercive measures have been applied to this political party.
Public funding for a political party can also be suspended if the party disbands or fails to submit the annual report or election declaration, or has violated rules on usage of public funding.
This is the first time when Latvian political parties have received direct public funding. Introduction of partial public funding of political parties and improvement of political parties’ financing system is necessary for diminishing the role of finances in politics and in order to increase political parties’ administrative capacity and public trust in political parties.