Foto: BB.LV / кабина автобуса
In Latvia, changes to the financing system for regional bus and rail transport are being considered. The Ministry of Transport has prepared an informational report for 2027–2030, which presents three possible options for the future operation of public transport. According to the LETA agency, citing the ministry, the document has been submitted for approval. After its review, the Cabinet of Ministers must choose a solution taking into account the possibilities of the state budget. The main problem is the growing gap between transport costs and the funds allocated by the state to cover them. ### Public transport lacks over 16 million euros According to the Ministry of Transport, in recent years, expenses for organizing public transport have significantly increased. The main reasons are rising wages, increasing fuel prices, energy resources, and other necessary services. At the same time, the basic state funding has remained unchanged since 2024, amounting to 93.8 million euros annually. In 2026, public transport expenses are projected to be at 109.9 million euros. Funding for regional transport in 2026 Basic funding 93.8 million € Projected expenses 109.9 million € Uncovered difference 16.1 million € The difference between basic state funding and projected expenses for 2026. Source: Ministry of Transport of Latvia. The ministry warns that costs will continue to rise in the coming years. Therefore, without additional measures, it will be difficult to maintain the current transport system. ### First option: route reductions and significant fare increases The most severe scenario assumes that public transport will continue to operate solely within the existing funding of 93.8 million euros. To stay within this amount, it will be necessary to significantly reduce the network of regional bus routes and decrease the volume of rail transport. Additionally, substantial fare increases and changes to the fare discount system are anticipated. According to the Ministry of Transport, this option will severely worsen the accessibility of public transport, especially for residents of the regions. Reducing transport services may complicate trips to work, education, medical appointments, and government institutions. ### Second option: fares increase by 10%, discounts to be revised The second scenario is considered practically feasible by the ministry. It involves maintaining the existing network of regional bus and rail routes, but with certain changes in financing. In particular, it is proposed to increase ticket prices by an average of 10%. At the same time, it is planned to revise the fare discount system. According to the ministry, expenses for discounted transport amount to about 25 million euros, or 28% of the costs indicated in the report. It is proposed to establish a maximum state support of 70% of the fare cost. The Ministry of Transport believes that this will allow for the preservation of transport services while simultaneously reducing the funding shortfall. ### Third option: fares will increase, but discounts will remain The third scenario provides for the preservation of the existing network of routes and the current discount system. At the same time, it is also proposed to increase ticket prices by an average of 10%. However, to implement this solution, the state will need to allocate an additional 15 million euros annually. The ministry considers this option the most favorable for passengers, as it will allow for the maintenance of public transport accessibility without significant changes to the existing discounts. However, its implementation will depend on whether additional funds can be found in the state budget. ### How do the three scenarios differ? | | Routes | Fares | Discounts | | --------- | ----------------------- | ----------------------- | ------------------------------ | | Option 1 | Significant reduction | Significant price increase | Changes | | Option 2 | Maintained | On average +10% | Revision, state support up to 70% | | Option 3 | Maintained | On average +10% | Remain | The third option requires about 15 million euros in additional funding annually. All three scenarios are currently proposals and not approved decisions. ### What else is planned for change? Regardless of which scenario the government chooses, the Ministry of Transport proposes to continue modernizing public transport. Among the planned areas are the digitalization of services, expanding cashless payments, implementing a unified ticketing system, and more accurate passenger flow accounting. It is also planned to improve the coordination of bus and rail routes, more closely integrate school transport, and revise the organization of bus station operations. According to the ministry's calculations, these measures should help increase the revenue of the transport system, improve the quality of passenger service, and use budgetary funds more effectively. ### When will a decision be made? So far, none of the proposed options has been approved. The report from the Ministry of Transport is undergoing approval, after which the Cabinet of Ministers must consider the issue. The ministry emphasizes that a significant reduction in the route network, while it may save budgetary funds in the short term, could negatively impact the development of regions and the mobility of residents. Therefore, the ministry advocates for the preservation of the existing transport network while gradually increasing revenues and improving the efficiency of the system.
