On Wednesday, February 25, a draft order prepared by the Ministry of Finance (MoF) regarding the preparation schedule for the draft law "On the State Budget for 2027 and the Budget Framework for 2027, 2028, 2029, and 2030" was submitted to the Government for consideration. The schedule establishes the measures to be taken and their deadlines to initiate the preparation of the draft law, which can be implemented prior to the Saeima elections, leaving the final decision-making within the competence of the newly elected Saeima and the Cabinet of Ministers.
As one of the stages of the budget development process, the project envisages the approval of the 2026 Progress Report of the Latvia's Fiscal-Structural Plan 2025–2028 (hereinafter – the 2026 Progress Report) by the Cabinet of Ministers, its submission to the Saeima and the European Commission, as well as the Minister of Finance's report to the Saeima session on the 2026 Progress Report.
In the process of developing the 2027 state budget, a systematic review of public sector expenditures will continue, aiming to ensure the efficient and economical use of public funds in accordance with national development priorities, to promote fiscally sustainable policy implementation in the medium and long term, and to create opportunities to reallocate resources toward measures with higher added value and priorities established by the government. To ensure a unified approach to the review of state budget expenditures, state budget expenditure review guidelines have been attached to the project.
Line ministries will perform an analysis of their budget expenditures, evaluating functions, public services, and potential structural reforms, as well as reviewing at least one-fourth of the basic budget's core function expenditures at a detailed level. Simultaneously, the MoF, in cooperation with line ministries, will continue the horizontal review of state budget programs, analyzing the use of allocated funding and the achievement of performance indicators. Funds obtained as a result of the expenditure review are primarily planned to be directed toward strengthening the fiscal space and financing government-defined priorities.
For the preparation of the state budget draft law, a new structure for the draft law's programs and sub-programs has been created, developed by continuing the implementation of a performance-oriented budget and adhering to the information submitted to the MoF by ministries and other central state institutions, aligning it as far as possible with the policy and operational areas of the respective ministry or central state institution.
Schedule for the preparation of the draft law "On the State Budget for 2027 and the Budget Framework for 2027, 2028, 2029, and 2030" prepared by the MoF:
- March 18, 2026: Submission to the MoF of information on progress in implementing the EU Council's country-specific recommendations for the 2026 Progress Report of the Latvia's Fiscal-Structural Plan 2025–2028.
- April 14, 2026: Approval of the 2026 Progress Report by the Cabinet of Ministers.
- By April 15, 2026: Submission of the 2026 Progress Report to the Saeima.
- April 20, 2026: Submission of the Fiscal Risk Management Report to the MoF.
- April 30, 2026: Submission of the 2026 Progress Report to the European Commission.
- According to the deadline set in the Saeima Rules of Procedure: Minister of Finance's report to the Saeima session on the 2026 Progress Report.
- September 18, 2026: Submission of a report to the MoF in the case referred to in Article 18 of the Law "On the State Budget for 2026 and the Budget Framework for 2026, 2027, and 2028."
- October 5, 2026: Preparation and submission to the MoF of the draft base for the state basic budget and state special budget for 2027, 2028, 2029, and 2030.
- October 29, 2026: Submission of a report to the Cabinet of Ministers in the cases referred to in Articles 17 and 18 of the Law "On the State Budget for 2026 and the Budget Framework for 2026, 2027, and 2028."
- November 10, 2026: * Review of the report in the Cabinet of Ministers in the cases referred to in Articles 17 and 18 of the Law "On the State Budget for 2026 and the Budget Framework for 2026, 2027, and 2028."
- Review of the informational report "Fiscal Risk Declaration" and approval of the fiscal safety reserve volume by the Cabinet of Ministers.
- Review of the informational report "On Forecasts of Macroeconomic Indicators, Revenue, and the General Government Budget Balance in 2027, 2028, 2029, and 2030" by the Cabinet of Ministers.
- Review of the informational report "On the Base of the State Basic Budget and State Special Budget and the Results of the Expenditure Review for 2027, 2028, 2029, and 2030" by the Cabinet of Ministers.
- Within two weeks after the expression of confidence in the Cabinet of Ministers: Submission of the updated budget preparation schedule to the Cabinet of Ministers within two weeks after the expression of confidence in the Cabinet of Ministers by the newly elected Saeima.
The draft order is available on the Legislative Acts Portal.
