President of Latvia Edgars Rinkevics has proclaimed the state budget for next year along with 46 accompanying laws, according to a notice published in the official gazette Latvijas Vestnesis.
The government approved the 2026 state budget on October 14, while the Saeima adopted it on December 4.
Under the 2026 state budget, revenues are projected at EUR 16.1 billion and expenditures at EUR 17.9 billion, resulting in a planned budget deficit of 3.3% of gross domestic product (GDP).
Consolidated state budget revenues next year are also projected at EUR 16.1 billion, with expenditures of EUR 17.9 billion. Compared with the 2025 budget, state revenues in 2026 are expected to increase by EUR 944.6 million, while expenditures will rise by EUR 804.3 million.
The planned deficit of 3.3% of GDP represents an increase compared with the projected 2.9% deficit this year.
This rise is primarily driven by a significant increase in funding for national defence and security, long-term support for Ukraine, and investments in strengthening public security.
For 2026, the government has identified national security, support for families with children, and quality education as the main state priorities, allocating a combined additional EUR 693.5 million to these areas.
In light of the geopolitical situation, an additional EUR 448.3 million is planned next year to strengthen national security. This funding will cover not only the development of military capabilities, but also investments in internal security and cybersecurity.
An additional EUR 94.8 million in 2026 is earmarked to strengthen support for families with children and to improve material assistance for children in out-of-family care.
Childbirth and childcare benefits will increase, along with enhanced support for guardians and adoptive parents.
To ensure access to quality education for all children in Latvia regardless of place of residence or school size, an additional EUR 45 million will be allocated to implement the new teacher remuneration financing model, “Programme at School,” including support staff for educators.
A further EUR 105.4 million is planned for other measures, including healthcare.
The president has also proclaimed a package of laws accompanying the budget. Among them are amendments to the Excise Duty Law, which provide for a gradual increase in excise taxes on several product groups starting next year, including alcoholic beverages, tobacco products, soft drinks, and energy drinks.
Several legislative amendments increasing support for families with children from next year have also been proclaimed. Amendments to the State Social Benefits Law stipulate that childcare benefits will henceforth be paid until a child reaches 1.5 years of age instead of the current two years. At the same time, the monthly benefit will increase from EUR 171 to EUR 298.
For children born before the 2nd of November next year, childcare benefits will continue to be paid from the age of 1.5 to two years at the current rate of EUR 42.69 per month.
Changes will also affect the state family allowance for children in education.
The allowance for children aged 16 to 20 will be paid if the child is studying full-time at a college or university and is not married. As a result, families whose children study at universities or colleges will again receive the allowance until the child reaches the age of 20. Currently, the allowance is paid only for children attending secondary or vocational schools.
From next year, the one-off childbirth allowance will also increase to EUR 600, up from the current EUR 421.17.
Amendments to the Value Added Tax Law have also been proclaimed, providing for a reduced VAT rate of 12% on certain basic food products from mid-next year.
In addition, legislative changes introducing gradual reforms to the current long-service pension system from 2027 have been proclaimed.
According to Zeltite Kazlenoka, a representative of Latvijas Vestnesis, based on current data, 127 legal acts will enter into force on January 1, 2026, while 108 legal acts will cease to apply. (BNN)