This is the final year before the next parliamentary elections, which means approving the state budget will be more challenging, as political parties are likely to focus more on pleasing their voters than on the government’s overall image or the benefit of society as a whole, Prime Minister Evika Siliņa (JV) said in an interview with TV3’s program 900 Seconds.
She explained that, given the current geopolitical situation, Latvia cannot afford not to invest in strengthening its defense capabilities. When asked whether it was right to do so at the cost of increasing national debt, Siliņa replied that in recent years the government has saved considerably, and the upcoming budget also plans significant cuts in public administration spending.
Asked whether the government is ready to deviate from commitments written in the Cabinet’s declaration for the sake of defense, Siliņa confirmed: “The most important thing is the safety of our people,” while again stressing how much public administration costs had already been reduced in recent years.
At the same time, she expressed concern that in this pre-election year, one of the coalition partners, eager to please their electorate, might make unrealistic demands and ultimately block the budget to show their influence. “In that case, I believe any partner who does so will be responsible for the absence of the difficultly negotiated measures in the budget — measures expected both by our National Armed Forces and by our citizens,” she said.
On whether the ruling coalition is more divided or united compared to the beginning of its term, Siliņa said she would not call it division, but noted that “this is a budget approval year, the last before parliamentary elections, when
parties focus more on their political priorities than on the government’s collective image.”
The Prime Minister predicted that next year’s budget will be “pulled” in different directions, but warned that there are only minimal opportunities left to make further cuts. “The only possibility to reduce spending further is in public administration, and even then it will be necessary to look at state-owned enterprises and municipalities,” she pointed out.
As reported, the government has designated security, support for families with children, and education as priorities in the 2026 state budget. Additional funding of 565.5 million euros is planned for these areas, according to the Ministry of Finance’s (MoF) information report, approved by the government on Monday, on “Priority Measures to Be Included in the State Budget Law for 2026, 2027, and 2028.”
According to the MoF, of this additional funding, 320.3 million euros is earmarked for security, 45 million euros for education, 94.8 million euros for family support, and 105.4 million euros for other measures. Most of the additional funding will come from reducing state budget expenditures.
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