In 2025, consolidated budget revenues are planned at EUR 15.081 billion and expenditure at EUR 17.093 billion, according to the budget bill.
Compared to the 2024 budget, the planned budget revenue in 2025 is projected to be EUR 583.2 million higher. Meanwhile, budget expenditure in 2025 is planned to be EUR 876.5 million higher than in the 2024 budget law. The basic budget is planned to receive EUR 10.2 billion in revenue, while expenditure is planned at EUR 12.7 billion. The special budget, on the other hand, is planned to raise EUR 5.2 billion, while special budget spending is planned at EUR 4.7 billion.
Internal and external security has been set as the top national priority.
Next year’s general government budget deficit is planned at EUR 1.3 billion, or 2.9 percent of gross domestic product (GDP).
In next year’s budget, a ceiling on public debt has been set at EUR 21 billion, or 47.3 percent of GDP at the end of 2025. Latvia’s GDP, on the other hand, is projected at EUR 44.379 billion in 2025.
The GDP growth forecasts used in the preparation of the budget bill are 2.2 percent for 2025, 2.2 percent for 2026 and 2.2 percent for 2027.
The general government structural deficit target, according to the European System of Accounts (ESA) methodology, is 0.82 percent of GDP in 2025, 0.75 percent in 2026 and 0.79 percent in 2027.
Defence accounts for 10.3 percent of budget spending next year, with a gradual increase in the Defence Ministry’s budget spending to 3.7 percent of GDP in 2026 (3.5 percent of GDP in 2025, 3.7 percent of GDP in 2026 and 2027). The „Defence“ function also partly covers measures related to the internal security of the country, such as the development of the technical infrastructure of the external border and the strengthening of cyber-security.
Public order and security, on the other hand, accounts for 6.6 percent of the total expenditure in the 2025 budget, with the largest share going to the Ministry of the Interior (State Police, fire protection, rescue and civil protection, State Border Guard, etc.) and the Justice Ministry (judiciary, execution of criminal sentences - prisons and their construction, probation, etc.).
More than a third or 33.2 percent in 2025 will be allocated to social protection of the population, including in the special budget expenditure on state pensions, benefits and other measures. The health sector will account for 11 percent of next year’s budget expenditure, which includes government-funded medicines and supplies, as well as emergency medical aid and other measures.
Education, including general education, vocational training institutions, higher education and other measures, will account for 7.2 percent of the budget expenditures. Recreation, culture and religion accounts for 1.4 percent, including the film sector, arts and literature, cultural heritage, sport and other activities.
A significant share, or 17.2 percent, of the budget is earmarked for economic activity, including ensuring fair competition, protection of the internal market and consumer rights, as well as funding for municipal roads, maintenance and repairs of national roads, public transport and the Rail Baltica project, among other measures.
Meanwhile, 12.5 percent of total state budget expenditure will be allocated to general government services, including contributions to the European Union (EU) budget, public debt management, support for state revenue and customs policy, part of EU fund payments, grants to local governments and science, and other measures.
Environmental protection accounts for 0.4 percent of total expenditure in 2025, including spending on environmental projects, nature protection, meteorology and hazardous waste management. Territorial and housing management has been allocated 0.2 percent of total expenditure in next year’s budget, including implementation of national regional development policy, support to planning regions and other measures.
Funds for unforeseen events are planned at EUR 110.288 million in Latvia’s 2025 budget.
The 2025 budget package includes 31 bills in total.