Latvia’s consolidated general government budget recorded a deficit of 21.5 million euros at the end of January, according to the Fiscal Discipline Council (FDP).
Budget Shift from Surplus to Deficit
This marks a significant change from the same period last year, when a surplus of 37.3 million euros was reported. While the state special budget, local government budgets, and budgets of derived public persons all registered surpluses – 146.2 million euros, 51 million euros, and 31.6 million euros respectively – the state basic budget experienced a deficit of 250.3 million euros.
Overall revenues for January increased by 3.5%, or 51.4 million euros, compared to the same period in 2025. The largest gains came from European Union (EU) funds, which increased by 10.1%, or 12.1 million euros.
Spending Increases
However, expenditures rose at a faster rate, increasing by 7.8% or 110.2 million euros. Capital expenditures saw the most substantial increase, rising by 86.5% or 82.8 million euros.
The 2026 Budget Law plans for consolidated general government expenditures of 20.9 billion euros. January expenditures accounted for 7.3% of this total, while revenues reached 7.9% of the annual plan.
Frequently Asked Questions
What was the overall budget situation in January?
Latvia’s consolidated general government budget showed a deficit of 21.5 million euros at the end of January.
Which part of the budget contributed most to the deficit?
The state basic budget recorded a deficit of 250.3 million euros, significantly contributing to the overall deficit.
What type of spending saw the largest increase?
Capital expenditures increased by 86.5%, or 82.8 million euros.
Given these early figures, it remains to be seen how the budget will perform throughout the remainder of the year, and whether the current trends will continue.
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