Investment process is complicated wide ranging process where investments play an important role in the development of national economy. National economy of Latvia experienced negative economical changes after recent economic crisis. Therefore it is necessary to improve the financing scheme of public investments for the strategically important public investment decisions in the state. Enhancing social welfare it is important to improve quality and quantity of public services, at the same time realizing necessary structural reforms, improving environment of investments and delivering some functions of the state to the private sector. Some problems were found in the functioning process of public investment program. The state have restricted amount of financial resources. Attracting possibilities of new financial resources by the state is limited because of passage the low about the state budget deficit and public dept. Public private partnership is economical and political instrument which helps to attract financial resources from the private sector. The negative factors of the environment of public investments were found. After the period of economical crisis strengthening fiscal discipline it is important to carry out smart fiscal consolidation prioritizing public expenditure in the certain areas and to use appropriate economical instruments and innovative decisions with aim to strengthen competitiveness and development of national economy.