On 4 December, the Saeima adopted the 2026 budget in its second and final reading. The budget of the Ministry of Economics (EM) approves expenditure of EUR 182 million, including EUR 115.1 million for carrying out core state functions and EUR 66.9 million for implementing foreign aid projects. The bulk of the budget funding – EUR 152.1 million – is earmarked for various support measures to boost business competitiveness and economic growth, namely attracting investment, supporting innovation and strengthening companies' export capacity.

The budget's main priorities also include measures to foster a favourable and secure environment worth EUR 25.7 million and support for competition policy implementation worth EUR 4.2 million.

"Next year's budget will focus on support measures for business and on driving economic growth. Our task is to create an environment in Latvia in which more and more innovative, high value-added companies emerge, capable of serving the domestic market and exporting successfully. The development of such companies is the foundation for sustainable and competitive economic growth. At the same time, support for large families will continue under the 'BALSTS' programme," emphasises Minister for Economics Viktors Valainis.

In setting out its most significant investments for 2026, the EM will allocate funding to a loan programme for large investment projects, to export promotion and investment attraction, and to assistance for large families under the "BALSTS" programme.

"The 2026 budget is an investment in the future of Latvia's people, because it strengthens our businesses' ability to compete globally, creates new opportunities for residents and builds a secure, innovative and sustainable environment. Every euro in this budget is a step towards a stronger economy, a better standard of living and confidence that Latvia will grow and develop," explains Acting State Secretary and Deputy State Secretary Raivis Bremšmits.

EUR 40 million will be allocated to financial instruments for investment projects, which will keep the loan programme running. Businesses will be able to receive support of up to EUR 10 million, or a capital rebate of up to 30% of costs, thereby improving their export prospects. Once the projects are completed, exports of at least around EUR 90 million a year are forecast, reaching approximately EUR 450 million over a five-year period.

A further EUR 18.4 million will be channelled into export market development and investment attraction, which will support growth in the tourism sector while also helping to expand export opportunities, attract foreign investment and strengthen the competitiveness of Latvian business on the international market.

Likewise, EUR 5.5 million will be allocated to assistance for large families under the "BALSTS" programme, in order to ease the burden of housing costs and provide support for buying or building a home.

Meanwhile, EUR 13.4 million is provided in the 2026 state budget for producing official statistics on the economic, demographic, social and environmental phenomena and processes taking place in society.

EUR 4.3 million is planned for 2026 to continue the existing Innovation Fund long-term research programme. Support for the development of the start-up ecosystem will also continue; EUR 400 thousand is provided for this purpose in the 2026 state budget.

With EUR 66.9 million, the ministry will develop and implement programmes under the Recovery and Resilience Facility (RRF) and the EU funds programming period 2021–2027 to improve business energy efficiency, strengthen energy independence, support digital transformation, raise productivity and improve energy efficiency, as well as to provide companies with short-term export credit guarantees for EU and OECD countries.

The ministry's main activities in 2026 include identifying the specific investment needed in the economy, attracting foreign investors and carrying out measures to develop a unified image of the Latvian state and strengthen international competitiveness.

Support will also be given to high-achieving, commercially oriented science and research projects, as well as to the development of major investment projects for economic transformation.

Next year's budget will also fund activities aimed at developing human capital: improving STEM skills, encouraging regional labour mobility, helping to attract highly qualified staff and develop skills in line with changing labour market demands, and improving public understanding of the role of lifelong learning.

Funding of EUR 1.23 million is earmarked for developing Latvia's network of foreign economic representations, with the aim of attracting foreign investment into value-added sectors, increasing the competitiveness of Latvian companies in Latvia and on international markets, boosting export growth (including growth in tourism exports), implementing national tourism policy and providing support for businesses and start-up entrepreneurs.

EUR 6.04 million is provided in the 2026 state budget for internal market supervision, conformity assessment and quality assurance. This funding will cover the protection of consumer interests, supervision of the goods and services market, supervision of hazardous equipment and metrology, the licensing and supervision of non-bank lending service providers, credit intermediaries and debt recovery service providers, the licensing and supervision of tourism service providers, the supervision of online intermediation services, and the operation of the out-of-court consumer dispute resolution mechanism.

While drawing up the budget, the EM found a way to reduce budget expenditure in 2026 by EUR 9.6 million while retaining its support programmes for businesses.