The question on efficiency and effectiveness of public administration of Latvia became more and more frequent with implementation of structural reforms in public management. The purpose of this article was to study how effectiveness and efficiency of public administration can be evaluated. What kinds of methods and indicators are used to evaluate performance of public administration in Latvia, particularly in the context of structural reforms? During the preparation of article authors made study of theory on development of evaluation system of public administration, on the methods and criteria used. Special attention was paid to analysis of performance management. To assess if and what kind of methods are used for evaluation of effectiveness and efficiency of public administration in Latvia author did a review of same latest policy planning documents approved by the Latvian government. Executives of public administration agree that elasticity in the process of administration of public resources is missing. There are no common criteria developed for optimization of state budget. The common and effective reporting system on the results and outcomes is missing. In practice there is the system in the public administration of Latvia under which institutions define targets and indicators, but assessment and analysis of outcomes is missing. Currently executives of public administration are performing reforms in the public administration. Unfortunately the main emphasis is made on the process, but not on the outcomes. There are criteria defined, but measurable indicators are missing. This lead to conclusion, that review of functions is performed mechanically and sustainable reforms are not the target, because the aim is to reduce expenses of the budget.