This research is aimed to improve the flow management of the government debt in Latvia, its connection to the current Latvian government debt model and to define future improvement directions of the current Latvian government debt model. During the research, the structuring of the current model, that is the model with the main function of finance attraction and payment of the coupon and is the bases of government debt coverage, is made. The main weakness of the current model is connected to the main goal that all resources are attracted only for government budget deficit coverage and no other functions are fulfilled. As in the internal issues, there is avoidance from too high-interest rates, authors summon to avoid by using the external issues system and to create the system for external issues alike for internal issues. Consequently, the current system does not provide opportunities to reduce government expenditures, but the improvements summoned by the authors could reduce government expenditures. In parallel to the reduction of coupon payments authors make analyses on the government expenditures on intermediaries. At the end of the research the possible improvements are suggested from the goal of issues, from the process of issues, form coupon payment and intermediaries expenditure perspective.