Finance president urges finance minister to carry on dialogues, reinforcing commitments made in budget plan
Latvia's 2026 Budget Proposes Efficiency Measures and Prioritized Investments
President Edgars Rinkevics met with Finance Minister Arvils Aseradens at his Jurmala residence on Wednesday to discuss the drafting of the 2026 budget. The focus of the discussion was on strengthening priorities such as security, demography, and education, as well as improving the efficiency of public administration spending.
The proposed measures aim to boost Latvia's fiscal sustainability by reducing administrative costs and streamlining public administration. One of the key actions is the merging and centralization of governmental bodies and administrative resources, which could save at least €150 million. This approach targets long-term basic expenses rather than one-time cuts, addressing duplication in supervisory authorities and aiming to streamline public administration overall.
To further control costs, the President and Minister agreed on freezing salaries of ministers and senior officials as a symbolic and practical cost-control measure. Additionally, sectoral ministries have been asked to submit detailed proposals, over 250 in total, targeting cuts in remuneration, subsidies, goods, and services.
Investments in education are also a priority. The budget proposes an additional €4.9 million investment in the European Space Agency programmes to support science, high-tech development, and international cooperation. This investment is expected to contribute to Latvia's competitiveness and security.
President Rinkevics has called for a continued constructive dialogue with various sectors and organizations during the preparation of the state budget. The dialogue is intended to involve line ministries, government cooperation partners, representatives of the education and demographic sectors, as well as other sectors and organizations.
An information report on spending cuts and reviews is to be submitted to the Cabinet of Ministers by August 19. The report is in line with the timetable for the 2026 budget and is a part of the budget drafting process. Martins Dregeris, the President's adviser, informed LETA about the call for continued dialogue to strengthen the priorities set out in the budget proposal.
These measures reflect a strategy of rationalizing government structures, enforcing strict spending controls, and prioritizing investments in security, demographic challenges, and education innovation for the 2026 fiscal year in Latvia. The aim is to improve the efficiency of public administration spending and boost public sector efficiency.
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