Foto: BB.LV / коллаж с евро, флагами Латвии и ЕС.
The consolidated state budget of Latvia for the first eight months of 2026 was executed with a surplus of nearly 128 million euros. In comparison, a deficit of 257 million euros was recorded during the same period last year. Thus, over the year, the budget balance improved by approximately 385 million euros, public media report. The main reason was that revenues grew faster than expenditures. However, as noted by the portal, the positive balance was formed not only due to increased tax revenues. A significant contribution came from European Union funds, primarily payments from European funds and the Recovery Fund. These became one of the key factors ensuring the budget surplus. In other words, the surplus does not mean that the government collected more taxes than expected. On the contrary, compared to the plan, the budget received a significant portion less in revenues. Over eight months, tax revenues increased by approximately 6% compared to last year. The most noticeable growth was provided by contributions from social security and value-added tax, aided by rising wages and consumer spending. However, actual tax revenues were nearly 96 million euros below the planned level. One of the factors was the excise tax. Despite an increase in revenues compared to last year, they did not reach the projected figures. This was influenced by a reduction in the excise tax rate on diesel fuel, including for agriculture, as well as a decrease in the sales of tobacco and alcoholic products. This means that the budget received less revenue than the government anticipated during planning. At the same time, government expenditures continued to increase. Capital investments—state investments in various projects—grew significantly. Additionally, spending on servicing the national debt and social benefits increased. Thus, the current surplus reflects not only economic growth and tax revenues but also a significant influx of European funding. The question of whether the annual tax revenue plan can be met without additional sources of income remains open.
