The President of Latvia, Edgars Rinkēvičs, proclaimed the law on the state budget for 2026 and the budget frameworks for 2026, 2027, and 2028, according to a statement from the official publication "Latvijas Vēstnesis," LETA reports.
The government approved the state budget for 2026 on October 14, and the Saeima adopted it on December 4.
The budget revenues for next year are planned at 16.1 billion euros, expenditures at 17.9 billion euros, and the budget deficit will be 3.3% of the gross domestic product (GDP).
The revenues of the consolidated state budget for next year are also planned at 16.1 billion euros, while expenditures are set at 17.9 billion euros. Compared to the 2025 budget, revenues will increase by 944.6 million euros, and expenditures will rise by 804.3 million euros.
The budget deficit next year will be 3.3% of GDP, and its growth compared to the projected deficit of 2.9% this year is mainly attributed to a significant increase in funding for strengthening the country's defense and security, long-term support for Ukraine, and investments in enhancing public safety.
Next year, the main state priorities are defined as national security, support for families with children, and quality education, for which an additional funding of 693.5 million euros is allocated.
Considering the geopolitical situation, an additional 448.3 million euros is planned for strengthening national security next year. This funding includes not only enhancing military capabilities but also investments in internal security and cybersecurity.
An additional funding of 94.8 million euros in 2026 is allocated to enhance support for families with children, as well as to improve material support for children in foster care. The childbirth allowance and childcare benefit will be increased, and support for guardians and foster parents will be strengthened.
To ensure access to quality education for all children in Latvia, regardless of their place of residence or school size, an additional funding of 45 million euros is allocated. This funding is intended for the implementation of a new funding model for teacher salaries under the "Program in School," including staff who provide support to teachers.
Moreover, another 105.4 million euros is planned for other activities, including in the healthcare sector.
The President also proclaimed the laws accompanying the budget.
In particular, amendments to the Excise Tax Law were made, which provide for a gradual increase in excise tax starting next year for several groups of goods, including alcoholic beverages, tobacco products, non-alcoholic and energy drinks. The law also stipulates that in two years, the reduced rate for petroleum products used in free ports and special economic zones will be abolished.
Several amendments to laws were also proclaimed, which provide for an increase in support for families with children starting next year.
For example, amendments to the State Social Benefits Law stipulate that the childcare benefit will be paid until the child reaches 1.5 years instead of the current two years. At the same time, the amount of the benefit will be increased from 171 euros per month to 298 euros per month. For children born before November 2 of next year, the benefit will also be paid from 1.5 to 2 years at a rate of 42.69 euros — as it is currently during this period.
Changes will also affect the state family benefit for children in education. The benefit for a child aged 16 to 20 can be received even if the child is studying in college or university full-time and is not married. Thus, for families whose young people are studying in universities or colleges, the benefit payment will be resumed and will continue until the age of 20. Currently, the benefit is paid for children studying in secondary or vocational schools.
Starting next year, the one-time childbirth allowance will also increase — it will amount to 600 euros. Currently, this allowance is 421.17 euros.
Amendments to the Value Added Tax Law were also proclaimed, stipulating that from the middle of next year, a reduced VAT rate of 12% will be applied to certain staple food products.
Additionally, changes to laws were proclaimed, providing for gradual changes in the current pension regulations for length of service starting in 2027.
