Spending review finds €284.8 million for Latvia's 2027 budget

Latvia's Finance Ministry has submitted to the government a report on the 2027–2030 state budget baseline and the results of a spending review. The review identified €284.8 million for 2027 that is proposed to be redirected to common and sector priorities, the ministry told the portal Delfi. The Cabinet of Ministers is expected to consider the report soon.

The draft decision would approve the budget baseline for the next four years, incorporate the review's results and instruct ministries to prepare changes in how funds are used and in legislation.

What the budget baseline is

The ministry explains that the baseline is the starting point for building future budgets: funding for existing state functions, commitments already undertaken and earlier decisions. The review examined where money could be used more efficiently or shifted to more pressing needs.

For the first time, spending on core state functions was itemised down to the level of specific services, measures and activities. The review covered 61 budget sub-programmes and 435 services, measures and activities. Separately, 115 previously approved priority measures were reassessed, and for 42 of them an opportunity to reallocate funding was found.

Amounts by year

Of the €284.8 million identified for 2027, €269.6 million is proposed for sector ministries' priorities and €15.2 million for other common priorities. Funding identified for 2028 is €143.1 million, for 2029 €135.8 million and for 2030 €134.8 million.

Baseline spending of the core state budget for 2027 is calculated at €13.209 billion, €380.4 million more than previously planned, mainly because of higher defence spending. Special budget spending is put at €5.493 billion, exceeding the earlier plan by €37.5 million, mainly due to old-age pensions.

Proposed measures

To limit remuneration costs, the proposal is to use the base monthly salaries published for 2025 in salary calculations in 2027. The Health and Interior ministries are to prepare changes to gradually narrow the range of positions entitled to a long-service pension from 1 January 2027, excluding dispatchers and officials of the Unified Contact Centre. Final spending levels and new priorities will be decided later in the budget process.