Review of next year’s Latvian state budget enters the final stage

On Wednesday, the Saeima’s Budget and Finance (Tax) Committee supported the draft law on the 2026 state budget and the medium-term budget framework for 2026, 2027 and 2028 for adoption in the final reading, completing work on next year’s budget.

Parliament is scheduled to vote on the budget and its accompanying draft laws in the final reading on the 3rd of December.

Previously, the committee examined 235 proposals for next year’s budget draft, approving only a few submitted by the opposition.

Two weeks ago, the Saeima reported that more than 240 proposals had been submitted for the 2026 state budget and medium-term budget framework draft law, while more than 210 proposals were submitted for the bills related to the state budget.

Finance Minister Arvils Ašeradens (New Unity) previously stated that a total of 585 proposals were received for next year’s budget and its accompanying legislative package — including 481 proposals submitted in the Saeima, 89 from ministries, and 15 alternative proposals submitted by the Cabinet of Ministers.

The committee approved the National Alliance’s proposal to increase funding for the National Guard Youth Center,

allocating a grant to the Latvian National Soldiers’ Association for work with Latvian veterans and for organising military history commemoration events.

The committee also supported a proposal from the Stability! faction to allocate funding to the Children’s Hospital Foundation to support children with autism spectrum disorders (ASD), providing ABA therapy as well as speech therapy and occupational therapy sessions.

Additionally, the committee supported an opposition proposal from MP Ilze Indriksone (NA) to fund the Livonian (Liv) Union Līvõd īt to ensure permanent public access to the Livonian People’s House and to provide information on Livonian cultural heritage and its contemporary context during the tourism season from mid-May to October.

MPs from New Unity gained committee support for allocating €150,000 to the Public Participation Fund to ensure the operation of the digital democracy platform Manabalss.lv.

The proposal highlighted that the platform has been an essential tool for citizen participation

for nearly 15 years, having hosted more than 140 initiatives — 83 of which have been incorporated into legislation, including constitutional amendments. According to New Unity MPs, a stable financing mechanism is necessary to strengthen public involvement in decision-making.

Opposition proposals covered a variety of requests. For example, MP Viktorija Pleškāne proposed allocating support for students in Latgale. Several opposition MPs proposed increasing support for families, including raising the childbirth allowance. Others called for additional funding for healthcare.

Opposition MPs also proposed funding for the restoration and maintenance of cultural centres in several municipalities and grants to local governments for various purposes, such as ensuring the operations of Krāslava hospital.

Saeima Budget Committee chair Anda Čakša (New Unity) previously stated that

proposals for next year’s budget could be supported only if the source of financing is clearly indicated.

A significant number of proposals were also submitted by MPs from the opposition United List (AS). To reduce expenditures, AS proposed eliminating the Ministry of Climate and Energy, the administration of the Society Integration Fund, and the supervisory boards of state-owned enterprises.

According to AS, these proposals would reduce state debt by almost €200 million and allow defence spending to exceed 5% of GDP next year. AS stressed that its MPs submitted no proposals that would increase expenditures.

Deputies also proposed reducing budget spending by limiting procurement volumes, reducing positions within the central administrations of ministries, and abolishing bonuses and financial awards. Further proposals included reducing the salaries of parliamentary secretaries, lowering political party funding, and eliminating ministers’ representation expenses.

For next year, consolidated state budget revenues are planned at €16.1 billion,

while expenditures are expected to reach €17.9 billion. Economic growth this year is forecast at 1.1%, while next year’s budget anticipates 2.1% growth, rising to 2.2% in subsequent years.

In evaluating ministerial proposals, the government decided that municipal earmarked grants next year will amount to €674.543 million instead of the €676.286 million foreseen in the first reading.

Between the first and second readings, the government approved additional funding of €22.3 million for the 2026 state budget. Part of this funding comes from reducing state debt-management expenses by €10 million, and another portion comes from adjusting expected dividend revenue from Latvijas valsts meži by €12.3 million.

The most significant additional allocation is €8 million for the redesign of the Rail Baltica project, while €1.4 million is planned for evaluating its implementation in Latvia.

A total of €4.8 million is earmarked to support rural general practitioners. Another €1.8 million is allocated to support victims of domestic violence, and €1 million for the preservation of sacred heritage.

The State Culture Capital Foundation will receive an additional €402,908 for programme and project competitions. Additional funding was also supported for the Ministry of Education and Science to assist teachers, and for the Ministry of Health to establish an Emergency Medical Assistance point in Indra parish — €349,536.

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