President of Latvia Edgars Rinkēvičs has proclaimed the state budget for next year along with 46 accompanying laws, according to a notice published in the official gazette Latvijas Vēstnesis.
The government approved the 2026 state budget on the 14th of October, while the Saeima adopted it on the 4th of December.
Under the 2026 state budget, revenues are projected at €16.1 billion and expenditures at €17.9 billion, resulting in a planned budget deficit of 3.3% of gross domestic product (GDP).
Consolidated state budget revenues next year are also projected at €16.1 billion, with expenditures of €17.9 billion. Compared with the 2025 budget, state revenues in 2026 are expected to increase by €944.6 million, while expenditures will rise by €804.3 million.
The planned deficit of 3.3% of GDP represents an increase compared with the projected 2.9% deficit this year.
This rise is primarily driven by a significant increase in funding for national defence and security, long-term support for Ukraine, and investments in strengthening public security.
For 2026, the government has identified national security, support for families with children, and quality education as the main state priorities, allocating a combined additional €693.5 million to these areas.
In light of the geopolitical situation, an additional €448.3 million is planned next year to strengthen national security. This funding will cover not only the development of military capabilities, but also investments in internal security and cybersecurity.
An additional €94.8 million in 2026 is earmarked to strengthen support for families with children and to improve material assistance for children in out-of-family care.
Childbirth and childcare benefits will increase, along with enhanced support for guardians and adoptive parents.
To ensure access to quality education for all children in Latvia regardless of place of residence or school size, an additional €45 million will be allocated to implement the new teacher remuneration financing model, “Programme at School,” including support staff for educators.
A further €105.4 million is planned for other measures, including healthcare.
The president has also proclaimed a package of laws accompanying the budget. Among them are amendments to the Excise Duty Law, which provide for a gradual increase in excise taxes on several product groups starting next year, including alcoholic beverages, tobacco products, soft drinks, and energy drinks. The law also предусматривает the abolition, after two years, of the reduced excise rate for petroleum products used in free ports and special economic zones.
Several legislative amendments increasing support for families with children from next year have also been proclaimed. Amendments to the State Social Benefits Law stipulate that childcare benefits will henceforth be paid until a child reaches 1.5 years of age instead of the current two years. At the same time, the monthly benefit will increase from €171 to €298.
For children born before the 2nd of November next year, childcare benefits will continue to be paid from the age of 1.5 to two years at the current rate of €42.69 per month.
Changes will also affect the state family allowance for children in education.
The allowance for children aged 16 to 20 will be paid if the child is studying full-time at a college or university and is not married. As a result, families whose children study at universities or colleges will again receive the allowance until the child reaches the age of 20. Currently, the allowance is paid only for children attending secondary or vocational schools.
From next year, the one-off childbirth allowance will also increase to €600, up from the current €421.17.
Amendments to the Value Added Tax Law have also been proclaimed, providing for a reduced VAT rate of 12% on certain basic food products from mid-next year.
In addition, legislative changes introducing gradual reforms to the current long-service pension system from 2027 have been proclaimed.
According to Zeltīte Kazļenoka, a representative of Latvijas Vēstnesis, based on current data, 127 legal acts will enter into force on the 1st of January 2026, while 108 legal acts will cease to apply.
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