President signs Latvia's 2025 budget into law

RIGA - President Edgars Rinkevics has promulgated Latvia's 2025 budget, in which consolidated revenue is projected at EUR 15.1 billion, expenditures at EUR 17.1 billion and the deficit at 2.9 percent of gross domestic product (GDP), according to an announcement published in the official gazette Latvijas Vestnesis.

Along with the law on the state budget for 2025 and budget framework for 2025, 2026 and 2027, the president has promulgated a number of related bills.

The Saeima adopted the budget after three days of debating on the evening of December 6 by 52 votes to 34.

Compared to this year's budget, Latvia's budget revenue is expected to grow by EUR 583.2 million next year, while expenditure are planned EUR 876.5 million higher in 2025.

Internal and external security has been set as the top national priority, with an additional EUR 284.3 million earmarked in the budget for this purpose.

Next year's general government budget deficit is planned at EUR 1.3 billion, or 2.9 percent of gross domestic product (GDP).

In next year's budget, the cap on public debt has been set at EUR 21 billion, or 47.3 percent of GDP at the end of 2025. Latvia's GDP, on the other hand, is projected at EUR 44.379 billion in 2025.

The GDP growth forecasts used in the preparation of the budget bill are 2.2 percent for 2025, 2.2 percent for 2026 and 2.2 percent for 2027.

The general government structural deficit target, according to the European System of Accounts (ESA) methodology, is 0.82 percent of GDP in 2025, 0.75 percent in 2026 and 0.79 percent in 2027.