Riga, Nov 6 (LETA) - After two days of debates, the Saeima lawmakers approved the next year's state budget and the accompanying package of draft laws in the first reading at an extraordinary session on Thursday.

51 MPs voted in favor on and 45 against in the vote on the state budget for 2026 and the budgetary framework for 2026, 2027 and 2028.

Lawmakers began work on the first reading of the budget on November 5 at 10 a.m. On the first day, they debated until 7 p.m. On the second day, they started work at 9 a.m., concluding before 2 p.m. In total, including breaks, MPs debated the next year's budget for almost 14 hours.

During the extraordinary sitting, both opposition and coalition lawmakers took the opportunity to debate. Coalition MPs emphasized investment in security in the next year's budget, with increased funding for the defense sector. Support for education and families was also stressed. The opposition, on the other hand, criticized the budget plans most often for the large deficit and for living "on debt".

Government ministers also took the opportunity to address the extraordinary session of the Saeima, listing the issues to be addressed in the coming year and what has already been done.

Opposition MPs promised to present proposals to reduce spending in next year's budget.

The draft law On the state budget for 2026 and the budgetary framework for 2026, 2027 and 2028 is accompanied by 50 related bills, including changes to certain taxes and reforms to the retirement pension system.

The Saeima approved at first reading amendments to the excise duty law prepared by the government, which provide for a gradual increase in excise duties on several groups of goods from next year, including alcoholic beverages, tobacco products, non-alcoholic and energy drinks. In two years' time, the reduced rate for petroleum products used in free ports and special economic zones will be phased out.

As reported, on October 14, the government approved the 2026 state budget, which foresees total consolidated state budget revenues of EUR 16.064 billion and expenditure of EUR 17.945 billion.

Compared to the 2025 budget, the increase in state budget revenue exceeds the increase in expenditure in 2026. State budget revenue is projected to increase by EUR 944.6 million, while expenditure is projected to increase by EUR 804.3 million.

Latvia's gross domestic product (GDP) next year is projected at EUR 43.953 billion in real prices, so the budget deficit will be 3.3 percent of GDP and public debt will not exceed 55 percent of GDP.

General government expenditure will fall to 47 percent of GDP next year, down from 47.5 percent this year. At the same time, defense spending will increase in line with the decline in total spending.

Overall, spending will be cut by EUR 171 million next year. Priority measures are allocated EUR 693.5 million, including EUR 448.3 million for defense and security.

The Finance Ministry notes that the 2026 state budget and the medium-term budgetary framework for 2026-2028 have been prepared in line with European Union (EU) and national rules on fiscal discipline.

Next year's budget includes additional investment in national security, support for families with children and quality education. The ministry also notes that the budget foresees more than EUR 1 billion in EU funds, as well as a EUR 151.4 million increase in local government revenue.