Latvia: public finances

What is Latvia's budget deficit?

Latvia's general government deficit was EUR 1.1 billion, or 2.5% of GDP, in 2025, up from 1.8% of GDP in 2024, according to provisional CSB results. Government spending rose 7.7% to EUR 19.8 billion and revenue 5.9% to EUR 18.7 billion.

The CSB figure follows the EU's ESA 2010 rules and differs from the Treasury's cash deficit, which was EUR 1.7 billion. The Ministry of Finance projected a deficit of 3.3% of GDP for 2026, citing higher defence spending. Provisional results are revised in October each year.

Official sources: CSB: In 2025 general government budget deficit amounted to 2.5 % of GDP · Ministry of Finance: Government approves #Budget2026

What is Latvia's national debt?

Latvia's general government gross debt was EUR 20.2 billion, or 46.9% of GDP, at the end of 2025, EUR 1.4 billion more than a year earlier, according to the Central Statistical Bureau. Eurostat's quarterly government debt data put the ratio at 46.9% again at the end of March 2026, against 82.9% for the EU.

This is consolidated debt at nominal value, the measure used for the EU's 60% reference value. It includes central and local government and social security funds. The State Treasury publishes central government debt separately.

Official sources: CSB: General government deficit and debt 2025 · Eurostat: Quarterly government debt

What is in Latvia's 2026 state budget?

The 2026 state budget plans consolidated revenue of EUR 16.1 billion and spending of EUR 17.9 billion, according to the Ministry of Finance. EUR 448.3 million of new priority funding is earmarked for national security, and health funding totals EUR 1.9 billion. The general government deficit is projected at 3.3% of GDP.

The Ministry says the higher defence spending uses the EU's national escape clause for defence. Work on the 2027 budget follows a schedule under which ministries submitted draft budget bases on 5 October 2026 and the Cabinet reviews forecasts in November.

Official sources: Ministry of Finance: Government approves #Budget2026 · Ministry of Finance: Preparation schedule for #Budget2027

How much tax does Latvia collect?

Taxes and social contributions in Latvia were 35.5% of GDP in 2024, against 40.3% for the EU, according to Eurostat tax aggregates. The CSB reports total general government revenue of EUR 18.7 billion in 2025.

The tax-to-GDP ratio includes social contributions but excludes non-tax revenue such as EU funds. The Ministry of Finance publishes how tax revenue is split between the state basic budget, local governments and the social insurance budget, and the State Revenue Service publishes monthly collection data.

Official sources: Eurostat: Main national accounts tax aggregates · CSB: General government results 2025

What is Latvia's government debt?

According to the IMF, general government gross debt in Latvia was 46.9% of GDP in 2025. The peak was 48.2% of GDP in 2010 and the low 9.0% of GDP in 2007. Europe & Central Asia median: 46.9% of GDP; Latvia is 25th highest of 51. Worldwide: 110th of 185.

Does Latvia's government borrow more than it raises?

According to the IMF, general government net lending or borrowing in Latvia was -4.0% of GDP in 2025, a deficit. Its high point since 2005 was 2007, at 0.6% of GDP; its low point was 2009, at -7.1% of GDP. It is 40th highest of 51 in Europe & Central Asia, where the median is -2.4% of GDP. Of 188 countries with 2025 data, 130th highest.

How much does Latvia's government take in?

The IMF puts general government revenue in Latvia at 41.3% of GDP in 2025. The peak was 42.2% of GDP in 2024 and the low 34.7% of GDP in 2005. It is 26th highest of 50 in Europe & Central Asia, where the median is 41.3% of GDP. World rank, highest first: 39th of 187.

How big is Latvia's government spending as a share of GDP?

The IMF puts general government spending in Latvia at 45.4% of GDP in 2025. That is the highest since at least 2005. Europe & Central Asia median: 43.3% of GDP; Latvia is 19th highest of 50. World rank, highest first: 32nd of 186.

How much tax does Latvia collect?

The latest figure from the IMF, for 2024, is 17.6% of GDP. It is the top of the series, which starts in 2005. Across Europe & Central Asia the middle value was 20.8% of GDP, and Latvia placed 31st highest of 42. World rank, highest first: 49th of 92.

How much does Latvia spend on its military?

The latest figure from SIPRI, for 2025, is 3.6% of GDP. It is the top of the series, which starts in 2005. Across Europe & Central Asia the middle value was 2.0% of GDP, and Latvia placed 6th highest of 46. Worldwide: 13th of 149.