Latvia's 2027 State Budget Faces a 469 Million Euro Gap
Latvia's new parliament and government will soon have to draw up the 2027 state budget. Existing commitments would require an extra 469 million euros next year, but the money is not there.
One of the first tasks for Latvia's newly elected Saeima (parliament) and the government it forms will be the state budget for 2027. The best-case hope is to approve it before the end of this year. According to the Latvian Television programme "de facto", the work will not be easy: an additional 469 million euros would be needed next year.
Priorities not yet included
This figure does not include the current priorities that ministries submit every autumn as new budget needs. Once those are added, the shortfall could grow further.
Costlier borrowing and deficit limits
The situation is complicated by the fact that borrowing is becoming ever more expensive. In addition, the budget deficit may exceed the limit because of defence spending only until 2028.
The government will therefore have to balance commitments already made against limited financing options.
