In 2025 general government budget deficit amounted to 2.5 % of GDP

Provisional¹ results (according to European System of Accounts (ESA 2010) methodology) compiled by the Central Statistical Bureau (CSB) show that in 2025, general government budget deficit amounted to EUR 1.1 billion or 2.5 % of gross domestic product (GDP). Compared to 2024, it is EUR 367 million more. In turn, general government consolidated gross debt accounted for EUR 20.2 billion or 46.9 % of GDP, and during a year it has increased by EUR 1.4 billion.

General Government Budget Deficit or Surplus and Debt

	2022	2023	2024	2025
Budget deficit (-) / Surplus (+), million EUR
General government	-1 753.6	-926.7	-726.5	-1 093.4
Central government	-2 001.5	-1 073.4	-1 137.5	-1 413.5
Local governments	+25.0	-141.2	+66.1	-171.6
Social security fund	+222.9	+287.9	+344.9	+491.7
General government budget deficit as % of GDP	4.9	2.3	1.8	2.5
Consolidated gross debt at nominal value at the end of the year, million EUR²
General government	16 038.9	17 578.5	18 801.5	20 173.9
Central government	17 653.6	19 403.2	21 026.1	22 972.7
Local governments	2 323.9	2 334.3	2 293.2	2 345.9
General government consolidated gross debt at nominal value at the end of the year as % of GDP	44.4	44.4	46.2	46.9

General government expenditure in 2025, compared to 2024, rose by 7.7 % and reached EUR 19.8 billion, but income increased by 5.9 % and reached EUR 18.7 billion.

As compared to operating cash flow data of the Treasury, where consolidated budget deficit in 2025 was EUR 1.7 billion, budget deficit calculated by the CSB, in accordance with the methodological requirements of European System of Accounts 2010, is EUR 0.6 billion or 1.5 percentage points of GDP less.

Most significant methodological adjustments with positive effect (reduces budget deficit) on the general government budget:

adjustments for the use of Recovery and Resilience Facility means (data of the Treasury) – by EUR 438.6 million or 1.0 % of GDP;
adjustments to claims against debtors (data of the Treasury) – by EUR 435.9 million or 1.0 % of GDP;
adjustments for the exclusion of financial transactions (data of the Treasury) – by EUR 75.8 million or 0.2 % of GDP;
tax adjustments by using the time adjustment method (data of the Ministry of Finance) – by EUR 63.8 million or 0.1 % of GDP;
adjustments for retained contribution into the Single tax account (data of the Treasury) – by EUR 30.7 million or 0.1 % of GDP.

At the same time, there have also been adjustments with negative effect (increases budget deficit) on the general government budget, of which the most significant are:

adjustments for balancing foreign financial aid flow (data of institutions involved in administration of foreign funds) – by EUR 169.6 million or 0.4 % of GDP;
adjustments for future payments of the 2nd pillar pension scheme funds (data of the State Social Insurance Agency) – by EUR 77.3 million or 0.2 % of GDP;
adjustments for the use of means of the Modernisation Fund (data of the Treasury) – by EUR 40.0 million or 0.1 % of GDP;
adjustments to obligations against creditors (data of the Treasury) – by EUR 32.1 million or 0.1 % of GDP;
adjustment of securities premium in the issue year to ensure recognition of premiums in revenue in the following years until the redemption of securities (data of the Treasury) – by EUR 27.6 million or 0.1 % of GDP;
adjustments for interest receivable (data of the Treasury) – by EUR 24.3 million or 0.1 % of GDP;
adjustments between accrued and paid interest (data of the Treasury) – by EUR 21.4 million or 0.05 % of GDP.

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In 2025, compared to 2024, general government debt has risen by EUR 1.4 billion and reached EUR 20.2 billion or 46.9 % of GDP. The increase in national debt was driven by the need to secure resources to finance the state budget deficit.

The previously published general government budget data for 2023–2024 have been revised due to the accounting of financial instruments of the European Union funds.

Eurostat will release information on the results of the April 2026 notification in all EU Member States on 22 April.

More information on General government budget deficit and debt notification is available in the Official statistics portal section Government finance.

Methodological information

In the course of preparing the April 2026 notification, data of the Ministry of Finance, the Treasury, State Social Insurance Agency, CSB, Riga City Council, State Revenue Service, Latvijas Banka, and institutions involved in administration of foreign funds were used.

¹ In accordance with the requirements of Regulation (EC) No. 479/2009, the Notification on General Government Budget Deficit and Debt is submitted to the European Commission twice a year – by 1 April and 1 October. The results of the Notification are used for assessing how the EU Member States observe the compliance of the respective economic indicators with the criteria established by the Maastricht Treaty, that is, the ratio of the planned and actual general government budget deficit to the GDP at current prices must not exceed 3.0 % and the ratio of the government debt to the gross domestic product at current prices must be no more than 60.0 %.

² Consolidation was carried out in each sub-sector but not across the sub-sectors.

Media requests:
Public Relations Section
E-mail: media@csp.gov.lv
Phone: +371 27880666

More information on data:
Vija Veidemane
Government Finance Section
E-mail: Vija.Veidemane@csp.gov.lv
Phone: +371 67366963