Friday, 7 August 2026
Rīga TV

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EconomyPublished: 7 August 2026 at 13:15

State Budget's "Inheritance" — Decisions Without Clear Funding

Latvia's government must soon begin drafting next year's state budget, and will have to do so during the pre-election period rather than waiting for the October 3 parliamentary elections. Latvian Television examined how the budget is actually put together and whether politicians promise spending first and look for money only afterward.

Foto: LSM (rus)

The government will soon need to start working on next year's state budget. This work falls in the run-up to the parliamentary elections scheduled for October 3, meaning the budget process cannot be postponed until after the vote and must proceed regardless of the political calendar.

How the budget is actually made

Latvian Television looked into how the state budget is really formed, and whether a common perception holds true — that politicians first make promises and propose new spending, and only afterward start searching for ways to fund them.

Inherited decisions without funding

As the report's title suggests, part of what shapes next year's budget is a kind of "inheritance" from earlier periods — decisions or promises already made that lack a clear source of financing. This leaves the incoming parliament and government having to figure out how to cover previously adopted but financially unsecured commitments.

Pre-election context

This round of budget planning is taking place while much of the political attention is focused on the upcoming elections. That can add extra strain, since careful budget preparation requires time and clarity, while in the pre-election period political parties often float new initiatives and promises without fully addressing their long-term financial coverage.

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