Fiscal watchdog: Latvia's consolidated budget shows €51.1 million surplus at end of July

Latvia's Fiscal Discipline Council (FDP) reports that the country's consolidated general government budget showed a surplus of €51.1 million at the end of July this year. A year earlier, the same period had shown a deficit of €419.9 million.

Breakdown by budget component

The state special budget recorded a surplus of €360.5 million by the end of July, municipal budgets showed a surplus of €43 million, and budgets of derived public entities posted a surplus of €60.7 million. The state basic budget, however, remained in deficit, at €413.1 million.

Revenue outpaces spending growth

Compared with the same period of 2025, budget revenue rose by 10.3%, or €1.1 billion. The council attributes this sharper increase mainly to payments received from European Union funds. Spending grew more moderately, by 5.5%, or €597 million, which the council links to lower spending on goods, services and regular payments into the EU budget, as well as more moderate growth in remuneration, subsidy and grant expenditures.

Spending execution tracking forecast

Under the 2026 budget law, consolidated general government spending is planned at €20.9 billion for the year, of which about €11.5 billion was forecast for the January–July period. Actual spending over the first seven months reached €11.4 billion — €91.7 million, or 0.8%, below forecast. The council concludes that spending execution is gradually converging toward the forecast level, with no significant deviation apparent so far. Seven-month spending accounts for 54.5% of the annual planned amount, while revenue represents 59.9% of the annual plan.