The government supported the allocation of an additional 22.3 million euros in the budget 0

Politics
LETA
The government supported the allocation of an additional 22.3 million euros in the budget
Photo: LETA

The government supported the allocation of additional resources of 22.3 million euros for the second reading of the state budget for 2026 in the Saeima.

The funds for additional resources were found by reducing state debt management expenses by 10 million euros, as well as by revising the planned income from dividends of JSC "Latvijas valsts meži" in the amount of 12.3 million euros, Finance Minister Arvils Ašeradens reported at the government meeting.

The most significant additional funding is allocated for the redesign of the "Rail Baltica" project - 8 million euros, while 1.4 million euros are planned for assessing the implementation of the "Rail Baltica" project in Latvia.

A total of 4.8 million euros will be directed to support rural family doctors.

Another 1.8 million euros are allocated for support for victims of violence, and 1 million euros for preserving sacred heritage.

In addition, 4 million euros will be directed to support protected electricity consumers.

Additional funds are also allocated to the Ministry of Education and Science (MES) to support teachers, as well as to the Ministry of Health - 349,536 euros for the establishment of an emergency medical care point in the Indra municipality and for other important national activities.

When considering the ministries' proposals for the budget, the government supported the allocation of targeted subsidies to local governments next year amounting to 674.543 million euros instead of the 676.286 million euros accounted for in the first reading.

The government also authorized the finance minister to issue state loans to the management of major ports in Latvia in 2026 on behalf of the state for refinancing construction loans issued by credit institutions. Loans for this purpose are allowed to be issued if it does not negatively affect the general government budget balance.

At the same time, the government rejected most of the proposals submitted by opposition deputies.

A total of 585 proposals were submitted to the budget for next year and the accompanying package of bills, Ašeradens reported at the government meeting. Of these, 481 proposals were submitted in the Saeima, 89 by ministries, and 15 alternative proposals by the Cabinet of Ministers.

Out of 48 bills included in the package of accompanying budget documents, no proposals were submitted for 17.

The government supported the majority of proposals from ministries and other central state institutions.

Evaluating the proposals for the budget bill for next year, the government instructed the Ministry of Culture, together with the sectoral ministries, to conduct an audit of the effectiveness of the functions of the Public Integration Fund, administered support programs, and expenses by May 1, 2026.

The Ministry of Economics, in cooperation with the MES, was instructed to prepare and submit for the Cabinet's consideration a report on the effectiveness of Latvia's participation in the programs proposed by the European Space Agency and to present proposals for further participation and development opportunities.

The Ministry of Finance, in cooperation with the Ministry of Economics, was instructed to assess the situation in the public catering sector and to submit proposals for necessary changes to the Cabinet of Ministers by June 1, 2026, in accordance with the established regulations.

The Ministry of Climate and Energy, together with the Ministry of Economics, was instructed to prepare proposals for improving the support system for protected electricity consumers by March 1, 2026.

The Ministry of Finance, together with the Ministry of Smart Governance and Regional Development, will instruct the Valka County Municipality to develop and approve a plan for improving the efficiency of the municipality's budget by March 1, 2026, to ensure the financial stability of the municipality in 2026 and in the long term. After evaluating the received documents, the Ministry of Finance will prepare a report for consideration in the Cabinet and propose a solution for finding the necessary financial resources and further actions.

The Ministry of Transport was instructed to prepare and submit to the Cabinet of Ministers by January 30, 2026, a report on reducing the administrative costs of the "Rail Baltica" project and SIA "Eiropas dzelzceļa līnijas" and reviewing the amount of remuneration to equalize conditions for public sector employees.

The Ministry of Health must present to the Cabinet a report on possible reallocations of European Union funds by the end of November 2025, as agreed, and on the tasks for ensuring the reconstruction of the building of the Latvian Oncology Center.

According to calculations by the MES, the funds provided in the draft budget for next year for implementing the "Program in School" funding model allow for the project to be implemented with the involvement of support staff in educational institutions at 70% of the originally planned volume of support staff.

The government decided to consider the issue of necessary additional funding for gradually increasing support staff during the budget execution process, conducting reallocations of funding if necessary.

In addition, the government took note that the number of positions in ministries for implementing the core functions of the state will be reduced by a total of 1,147 in 2026.

The government also supported the Cabinet's proposal for a more moderate increase in the excise tax on beer. Initially, the budget's first reading provided for an increase in the minimum rate to 24.8 euros per 100 liters, but by the second reading, it was decided to set a lower level - no less than 23.1 euros per 100 liters. Currently, the excise tax on beer is 22.5 euros per 100 liters.

To compensate for these changes, the government supported the proposal to increase the excise tax rate on other alcoholic beverages - from 2,115 euros to 2,276 euros per 100 liters of absolute alcohol, starting from March 1, 2028.

In the law on budget and finance management, the government supported the proposal that every four years, state and municipal institutions conduct the development of a "zero budget," including assessing the effectiveness of the use of state and municipal real estate.

As reported, the revenues of the consolidated state budget for next year are planned at 16.1 billion euros, and expenditures at 17.9 billion euros. The main priorities of the budget are strengthening security and developing defense.

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