Latvia's base budget expenditure for 2026 projected at EUR 12.966 billion after EUR 171 million spending cut

RIGA - The base expenditure in Latvia's basic government budget is projected at EUR 12.966 billion for 2026 and at EUR 12.758 billion for 2027, according to the Finance Ministry's report to the government on the results of a review of budget expenditure for 2026, 2027, 2028, and 2029.

The spending cuts have resulted in saving EUR 171.065 million in the 2026 budget, which should primarily be directed towards improving the fiscal space, the Finance Ministry says in the report.

Compared to the budget framework for the respective year, expenditure has been increased by EUR 441 million for 2026 and by 784.2 million for 2027.

For 2028, budget expenditure is now planned at EUR 12.406 billion and for 2029 at EUR 12.461 billion, which is an increase of EUR 431.7 million and EUR 487 million, respectively, compared with the budget framework.

Expenditure on core government functions is planned at EUR 10.267 billion for 2026, EUR 10.648 billion for 2027, EUR 10.892 billion for 2028 and EUR 11.196 billion for 2029.

Compared to the framework for the respective years, expenditure for core government functions is increased by EUR 218.6 million for 2026 and EUR 417.4 million for 2027. In turn, expenditure for core government functions for 2028 and 2029 is increased by EUR 661.8 million for 2028 and EUR 965.5 million for 2029.

Expenditure for the implementation of projects and activities co-financed by European Union (EU) policy instruments and other external financial assistance (EFA) is planned at EUR 2.699 billion for 2026, EUR 2.111 billion for 2027, EUR 1.514 billion for 2028 and EUR 1.265 billion for 2029.

Compared to the framework, expenditure on these projects and activities has been increased by EUR 222.3 million for 2026, by EUR 366.7 for 2027, and by EUR 230.2 million for 2028, but reduced by EUR 478,6 million for 2029.

The base expenditure of the government special budget is estimated at EUR 5.069 billion for 2026, EUR 5.477 billion for 2027, EUR 5.842 billion for 2028, and EUR 6.21 billion for 2029.

Compared to the framework, special budget expenditure is cut by EUR 84.8 million for 2026, and by EUR 22.4 million for 2027. Meanwhile, special budget expenditure is increased by EUR 342.6 million for 2028 and by EUR 710.7 million for 2029.

According to the Finance Ministry's report, budget expenditure for 2026 has been cut by EUR 171.1 million.