“We have agreed collegially in the government that next year's state budget resources will be primarily directed towards strengthening our national security, streamlining the healthcare sector, developing the education sector, and supporting citizens to compensate for the rise in electricity costs. To stimulate Latvian companies to invest in the development of new products and thereby foster Latvia's economic growth and increase export volumes, targeted state investments in the economy are also planned for next year, which, together with EU investments, will make a significant contribution to our economy,” emphasizes Minister of Economics Viktors Valainis.

The Ministry of Economics' 2024 state budget expenditure is planned across seven areas of operation.

“The Ministry of Economics' 2024 budget expenditure priority – increasing business competitiveness – involves promoting exports, investments, and innovation. At the same time, it is satisfying that, within the framework of the 2024 state budget's priority measures, the allocation of additional funding in the amount of 6.4 million EUR for investment and export promotion measures, as well as support for startups, has been approved,” the minister continues.

The state budget for increasing business competitiveness is set at 77.3 million EUR. To foster business development by creating industrial zones, new jobs, and generating high added value, the state budget is earmarked for attracting high value-added investments, promoting Latvia's export capacity, economic transformation, and supporting the export capacity of the tourism sector. With the aim of facilitating the development of innovation, the state research programme “Innovation Fund – Sectoral Research Programme” will also be continued, with 8 million EUR allocated for this purpose in 2024. “I am pleased with the Saeima’s support for our proposal to continue state support for entrepreneurs for the implementation of large investment projects, earmarking 70 million EUR for this purpose over the next three years,” emphasizes the Minister of Economics.

For the promotion of Latvia's service exports and investment attraction, an additional 6 million EUR in funding is earmarked in the 2024 state budget. “To provide support to Latvian companies, well-thought-out and sustainable state support activities are required, which are directly related to additional support for making investments, market reorientation, and the development of new and innovative products and services, thereby promoting economic activity also in Latvia's regions,” emphasizes Minister of Economics Viktors Valainis. Within the framework of this funding, it is planned to implement measures to promote the export of business and events in Latvia, providing support for activities such as the organisation of strategically important and exceptionally large projects/events in Latvia and international-scale activities (seminars, conferences, congresses, exhibitions) in Latvia.

Meanwhile, additional funding of 400,000 EUR is earmarked in next year’s state budget for startup support. “Startups play a crucial role in the overall innovation ecosystem because they ensure the inflow of innovative business ideas and facilitate a more rapid paradigm shift of the economy towards a knowledge economy. Startups have the greatest potential to transfer our scientists' discoveries and innovations into the economy, including in deep tech. Furthermore, startups are creating a new business culture, focusing on sustainable business models, the circular and digital economy, clean energy, industrial innovations, and climate change goals. We must be more ambitious and we can do more to ensure the availability of financial support for faster startup growth and development,” emphasizes Minister of Economics Viktors Valainis. Support for startups will be delivered through organizations representing the startup ecosystem operating in Latvia and partners of the memorandum “Implementation of the Latvian Startup Ecosystem Development Strategy” – the foundation TechChill, Riga Technical University, the foundation TechHub, the association “Latvian Business Angel Network”, the Latvian Startup Association, and the Latvian Private Equity and Venture Capital Association for the realization of the joint Startup Development Strategy for 2022-2025. It is planned to implement activities such as international-level events (conferences, seminars), individual consultations for early-stage startups regarding available investments, and investor pitching sessions, etc. The implementation of these activities is essential for Latvia’s regional and international development.

Significant funding is also earmarked for increasing economic resilience and energy independence, improving construction quality, safety, and accountability, promoting housing availability, as well as for other activities.

For the promotion of economic resilience and attracting investments for energy independence, 35.9 million EUR is earmarked. In 2024, state budget expenditures are planned for the support of protected electricity users, as well as the implementation of the offshore wind energy joint project ELWIND.

The state budget for the implementation of construction and housing policy is set at 16.9 million EUR. To ensure a favourable environment for investments in Latvia, fostering the construction and renovation of housing, including rental housing, as well as improving housing availability, state budget resources are allocated for improving the quality, safety, and accountability of the construction process, and increasing digitalisation in the construction process, reducing administrative burdens. Funding is also provided for housing accessibility support – state budget funding in the amount of 9.1 million EUR is earmarked in 2024 for the continuation of the housing guarantee programmes and the “Balsts” support programme implemented by Altum.

For internal market supervision, 5.7 million EUR is earmarked. To ensure that Latvia's market supervision system meets the requirements of the European Single Market, and to ensure that only safe products and services that comply with specific essential requirements are available on the Latvian market, including in the digital environment, financial resources are earmarked in the 2024 state budget for the implementation of market supervision measures, as well as for conformity assessment and quality assurance. For effective consumer rights protection, especially in the digital environment, an additional 1.2 million EUR in funding is earmarked, within the framework of which consumer safety, satisfaction, and trust in the market will be promoted, sustainable consumption developed, the protection of collective consumer claims introduced, compliance with the rights of especially protected parts of society improved, and market supervision processes optimised and developed.

For the provision of official statistics next year, state budget funds in the amount of 14.04 million EUR are earmarked. To modernise the provision of official statistics and increase the compliance of statistics with quality requirements, funding in 2024 is earmarked for the introduction of additional e-solutions in statistical data collection and, accordingly, for reducing the administrative burden, increasing data availability, and for the creation of lifelong learning and graduate monitoring.

For the provision of the Ministry of Economics’ sector management and policy planning process, 10.49 million EUR is earmarked, within which funding is provided not only for the development of policies that foster the development of the Latvian economy but also for the implementation of measures for innovation development and digitalisation, export promotion, creating a competitive and more favourable business environment, startup support, as well as for the introduction of a unified management model for human capital and employment in Latvia.

For the implementation of competition policy, financial resources in the amount of 4.9 million EUR are earmarked in the 2024 state budget, which will be used for the prevention of the most significant competition law violations and the promotion of fair competition.