EU funding received in February improved Latvia's general government balance

RIGA - European Union (EU) funding released by the European Commission (EC) in February improved Latvia's general government balance, LETA was told at the Finance Ministry.

According to Treasury data, in the first two months of 2026, Latvia's consolidated general budget showed a surplus of EUR 425.4 million, in contrast to a EUR 68.1 million deficit a year ago. The general government surplus grew mainly thanks to increased foreign financial assistance revenue in the central government budget, as the EC released EUR 861.9 million worth of EU funding to Latvia. The Finance Ministry notes that a surplus was recorded at all budget levels in the first two months of this year.

Total budget revenue in the first two months of this year was EUR 3.544 billion, which is an increase of EUR 651.3 million, or 22.5 percent, compared to the first two months of last year.

Revenue from foreign financial assistance grew by EUR 433 million year-on-year. EC payments for the 2021-2027 EU programming period were received at the beginning of this year, including EUR 242 million more revenue from the European Regional Development Fund (ERDF), EUR 60.8 million more revenue from the Cohesion Fund, and over EUR 41 million more revenue from the European Social Fund (ESF+) and the Just Transition Fund (JTF).

In the following months and for the full 2026, revenue from EU funds and the implementation of the Recovery and Resilience Facility (RRF) plan is expected to be significantly higher than a year ago, the Finance Ministry informs.

Meanwhile, total tax revenue in Latvia's budget, including the balance in the single tax account, increased by EUR 141.4 million, or 6.2 percent, in the first two months of this year compared to the first two months of last year, reaching EUR 2.414 billion. In the first two months of this year, tax revenue in Latvia's budget reached 99.6 percent of the target, excluding the balance in the single tax account.