“Latvia continues to live on borrowed money” — MPs demand explanation of 2026 budget advertising costs

Opposition lawmakers from the United List (AS) have submitted a formal request asking Finance Minister Arvils Ašeradens (New Unity) to explain the costs and usefulness of advertising related to the 2026 state budget.

According to AS, the advertising campaign — intended to report to taxpayers on how public funds are being spent — presents the budget in unjustifiably optimistic tones, even though “the 2026 state budget is not something to boast about.” The party argues that “the state continues to live on borrowed money, and the available funds do not meet either society’s needs or the government’s loudly declared promises of fiscal restraint and expenditure reviews.”

AS lawmakers believe taxpayers should receive precise and adequate information about both the content of the budget and the costs of public communication activities, enabling an assessment of their effectiveness and value for money.

“Latvian society has the right to know how much such a campaign costs and whether its outcome aligns with declared values and the public interest — rather than merely creating an illusion of care for residents,” AS said.

As previously reported,

on the 4th of December the Saeima adopted the 2026 state budget in final reading.

Budget revenues are projected at €16.1 billion, while expenditures are planned at €17.9 billion, resulting in a projected budget deficit of 3.3% of gross domestic product (GDP). The budget was approved by 52 MPs, while 42 voted against.

During deliberations on the 2026 budget, lawmakers also adopted amendments to the excise tax law providing for a gradual increase in excise duties on several product groups, including alcoholic beverages, tobacco products, soft drinks, and energy drinks. In addition, the reduced excise rate for petroleum products used in free ports and special economic zones is set to be abolished after two years.

From 15 March next year, excise tax on strong alcoholic beverages will increase. From 1 March 2028, excise duties will rise on all alcoholic beverages, increasing the final price of spirits by €0.51, wine by €0.15 to €0.30, and beer by €0.03 per bottle.

A faster increase in excise tax rates for all tobacco products is planned for next year and from 2027 — five percentage points higher than previously envisaged. Compared with current prices, the cost of a pack of cigarettes is expected to rise by €2.20 by 2028, reaching €7.50. The price of heated tobacco products is set to increase by €0.35 per pack, while a two-millilitre package of e-liquid will rise by €0.15.

From 2028, higher excise duties are also planned for sweetened beverages,

and a separate excise tax rate will be introduced for energy drinks.

At the same time, the Saeima adopted several legislative amendments aimed at increasing support for families with children. Amendments to the State Social Benefits Law provide that child-care benefits will be paid until a child reaches 1.5 years of age instead of the current two years, while the monthly benefit amount will increase from €171 to €298.

For children born before the 2nd of November next year, the benefit will continue to be paid from the age of 1.5 to two years at the current rate of €42.69 per month.

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