In the medium term - from 2026 to 2028 - state budget expenditures are planned to be reduced by 844.1 million euros, which will be ensured by measures to revise and optimize expenditures, the Ministry of Finance (MF) reported.
During the budget revision for the next year, the expenditures under the state debt management item were reduced by an additional 10 million euros each year for the second reading, resulting in a total savings of 30 million euros over three years, which complements the overall consolidation, the Ministry of Finance noted.
The reduction in state expenditures in the medium term will be gradual. Thus, expenditures will be reduced by 243.4 million euros in 2026, 304.6 million euros in 2027, and 296.1 million euros in 2028.
In particular, the main budget expenditures for the next year have been reduced by 50 million euros, sectoral ministries identified and cut expenditures by 181 million euros, and an additional 12.4 million euros were saved during the preparation of the budget bill.
Thus, the total reduction in expenditures over three years will amount to 844.1 million euros, and these funds will be directed towards financing the government's priorities.
National security, healthcare, support for families with children, and quality education have been identified as the main priorities for 2026, and an additional 700 million euros will be allocated to these areas.
The Ministry of Finance reported that 448.3 million euros are planned for strengthening national security next year, including investments in military capacity, internal security, and cybersecurity, procurement of equipment and technology, training of soldiers and conscripts, construction of counter-mobility systems, development of the defense industry, and support for border municipalities.
In 2026, additional funding of 94.8 million euros is planned to enhance support for families with children, improve the material support for children in out-of-home care, and strengthen healthcare. The childbirth allowance will increase to 600 euros next year from the current 421.17 euros, while the childcare allowance will rise to 298 euros per month from 171 euros.
Support for guardians and adoptive parents will also increase, including the remuneration for guardians from 54.07 euros per month to 298 euros per month, and the one-time payment for adopting a child will rise from 1,422.87 euros to 2,433 euros. Non-working guardians will receive social insurance from the state budget.
In the healthcare sector, additional funds are allocated to expand state-funded outpatient and inpatient services and improve access to medications. According to the Ministry of Finance, the possibilities for reimbursing medications will be expanded, compensation for pharmacist services for prescribed medications will be introduced up to 10 euros, and first-group disabled individuals will be exempt from this fee.
Funding will also be allocated for maternal and child health protection, family planning services, early diagnosis and treatment, and expanding access to palliative care, including home care for patients. Additionally, the work of rural family doctors will be strengthened.
Additional funds have also been allocated for education to ensure access to quality education for all children in Latvia, regardless of their place of residence and school size. An additional 45 million euros is planned for the implementation of a new teacher salary funding model "Program in School," including for support staff.
Next year, the non-taxable income minimum will increase by 40 euros to 550 euros per month. The minimum wage will rise from 740 euros to 780 euros.
