Administrative and territorial reform in Latvia was planned and carried out in order to increase the amount of funds available to local governments and promote self-sufficiency, stability and development, or in other words - to increase efficiency of local government performance. Process of reform is finished, and so raises the question – are the goals achieved, are there increased the efficiency of local government budgets to ensure regional development and growth? The results of the analysis also can provide important conclusions as to whether the future need to continue the reform process, as well as the direction and scale to this work.