Latvia’s state budget for 2027 will implement a policy of austerity, control, and reform, Finance Minister Maris Kucinskis announced, LSM reports. Speaking in an interview with Latvijas Radio, Kucinskis said that the government would freeze budget spending and public sector wages. At the same time, the government did not intend to raise taxes in 2027, he said. Kucinskis suggested merging some state institutions, while pledging not to cut funds from health care and education. The Ministry of Health estimated that the health care sector needed an additional EUR 826mn of funding in 2027, LSM reported. Kucinskis expects the state budget to be approved in parliament at the end of January 2027. Earlier, the Finance Ministry called for limiting new contracts and postponing non-critical spending until the end of 2026, LSM reported. Also, the ministry suggested moving towards a zero-deficit budget, which would require fiscal consolidation of around EUR 8.9bn over 2027-2030.
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