Last year, municipalities were provided with 100% of the planned personal income tax (PIT) revenues and additional income beyond the plan 0 5

The ministry notes that in 2025, municipalities were fully provided with the tax revenues stipulated by law, and at the end of the year, they received additional funding beyond the guaranteed forecast. In total, 2.159 billion euros of PIT were directed to the municipalities' budgets, of which 2.134 billion euros was the legally established amount, and 25.3 million euros were additional revenues beyond the guaranteed amount.

As the Ministry of Finance emphasizes, the financing model for municipalities is designed to protect their budgets from short-term fluctuations in revenues. The legislatively established guaranteed amount of PIT ensures stable and predictable revenues throughout the year, while additional revenues are distributed according to the actual performance of tax revenues at the end of the year.

In the coming years, stable growth in tax revenues for municipalities is forecasted - this year, along with compensation, it will amount to 151.4 million euros, or 6.1%, in addition to the guaranteed PIT amount. Revenues exceeding the guaranteed level will be directed towards repaying debt obligations, which will strengthen the financial stability of municipalities and contribute to the balanced development of regions.

Additionally, this year, 3 million euros will be allocated to five municipalities on the external border of the European Union for enhancing security: the Ludza region will receive about 1 million euros, the Kraslava region over 780,000 euros, the Balvi region over 580,000 euros, the Aluksne region 383,000 euros, and the Augsdaugava region 265,000 euros.