On Tuesday, the 15th of October, Speaker of Latvian Saeima Daiga Mieriņa received from Minister of Finance Arvils Ašeradens the state budget plan for 2025.
The Saeima speaker said this is a budget of national security and support for the least protected groups of Latvian residents. “A lot is stated in the budget to make sure our nation and residents feel better and safer,” said Mieriņa.
She praised the ability to take significant steps in the field of well-being, improving the well-being of the population. “A little bit, but we are moving upwards,” said Mieriņa, emphasising that the budget is built on the foundations of difficult negotiations.
Mieriņa admitted that this budget does not cover all needs, because, for example, insufficient funding has been earmarked for health care, as well as plans for education reform are currently without clear funding, with the government committing to looking for it.
Saeima deputies will have to work extra hard to find the best possible solutions to improve the welfare of Latvian residents and promote Latvia’s economic growth, said the Saeima speaker, adding that she expects active cooperation with the government.
In her opinion, when adopting this budget, it is necessary to agree on amendments to the law, which would impose the obligation to create the state budget as a “zero budget”. This is important in order to reduce bureaucracy and review all expenditures on the merits, stressed the speaker of the Saeima.
The revenue of the state consolidated budget is planned to be EUR 15.081 billion next year, while expenditure is planned to be EUR 17.093 billion, provided for by the law on the state budget for 2025 and the budget framework for 2025, 2026 and 2027, supported by the government.
Compared to the 2024 budget, the planned state budget revenue in 2025 is estimated to be EUR 583.2 million higher. In turn, the state budget expenditures in 2025 are estimated to be EUR 876.5 million higher than in the state budget law of 2024. The projected revenue in the basic budget amounts to EUR 10.2 billion, while expenditure amounts to EUR 12.7 billion. The special budget, on the other hand, has revenues of EUR 5.2 billion and expenditures of EUR 4.7 billion.
Internal and external security are outlined as priorities.
Next year’s general government deficit is planned at 1.3 billion euros, or 2.9% of gross domestic product (GDP).
The budget plans to set the maximum national debt ceiling at EUR 21 billion or 47.3% of GDP at the end of 2025. In turn, GDP next year is planned at EUR 44.379 billion.
The labour tax change proposal foresees an increase in the net income of about 95% of workers, or everyone whose gross salary is up to EUR 4 000 per month. The largest increase is intended specifically for employees with a salary of up to EUR 2 500.