Latvia's consolidated budget shows €127.6 million surplus at end of August

Latvia's consolidated general government budget recorded a surplus of €127.6 million by the end of August this year, according to the Fiscal Discipline Council (FDP). This marks a sharp turnaround from the same point last year, when the budget showed a €257 million deficit.

Mixed results across budget components

The overall figure reflects differing trends across budget segments. The state special budget posted a surplus of €417.5 million by the end of August, municipal budgets showed a €75.3 million surplus, and budgets of derived public entities recorded a €73.3 million surplus. In contrast, the state basic budget ran a deficit of €438.4 million.

Revenue growth linked to EU funds

Compared to 2025 figures, revenue this year grew by 9%, or €1.1 billion. The FDP attributes the faster revenue growth mainly to payments received from European Union funds. Expenditure grew at a more moderate pace, up 5.7%, or €692.1 million, which the FDP links to lower spending on goods and services and regular EU budget payments, as well as slower growth in compensation and subsidy expenditures.

Spending tracks close to forecasts

Under the 2026 budget law, consolidated general government expenditure is planned at €20.9 billion, of which roughly €13 billion is allocated for the January-August period. Actual spending over the eight months reached €12.9 billion — €94.4 million, or 0.7%, below forecast. The FDP notes that expenditure execution is gradually converging toward projected levels, with no significant deviation observed so far. The eight-month spending figure represents 61.9% of the annual plan, while revenue collected represents 68.4% of the yearly target.