RVFV2602
General government budget deficit was 2.5 % of GDP in 2025
Data 1 from the Central Statistical Bureau of Latvia (CSB), compiled in accordance with the European System of Accounts (ESA 2010) methodology, show that the general government budget deficit amounted to 1 085 million euro or 2.5 % of gross domestic product (GDP) in 2025 and was 340 million euro higher than in 2024. General government consolidated gross debt stood at 20.2 billion euro or 46.2 % of GDP, representing an increase of 1.4 billion euro compared with 2024.
General government budget deficit or surplus and debt
| 2022 | 2023 | 2024 | 2025 | |
| Budget deficit (−) or surplus (+); million euro | ||||
| General government | −1 711.8 | −881.6 | −744.8 | −1 085.3 |
| Central government | −1 959.7 | −1 028.3 | −1 155.8 | −1 396.0 |
| Local governments | +25.0 | −141.2 | +66.1 | −174.1 |
| Social security fund | +222.9 | +287.9 | +344.9 | +484.8 |
| General government budget deficit as % of GDP | 4.8 | 2.2 | 1.8 | 2.5 |
| Consolidated gross debt at nominal value; end of year, million euro 2 | ||||
| General government | 16 024.3 | 17 570.3 | 18 795.9 | 20 153.4 |
| Central government | 17 638.9 | 19 394.9 | 21 020.5 | 22 954.7 |
| Local governments | 2 323.9 | 2 334.3 | 2 293.2 | 2 343.4 |
| General government consolidated gross debt at nominal value; end of year, % of GDP | 44.5 | 44.5 | 45.7 | 46.2 |
In 2025, general government expenditure amounted to 19.8 billion euro, an increase of 7.6 % compared with 2024. Revenue amounted to 18.7 billion euro, up by 6.0 %.
According to cash flow data published in the annual report of the Ministry of Finance, the consolidated budget deficit amounted to 1.8 billion euro in 2025. The general government deficit calculated by the CSB in accordance with ESA 2010 was 0.7 billion euro lower, a difference of 1.6 percentage points of GDP.
The main methodological adjustments and their contributions to the reduction in the general government deficit were:
- adjustments for the use of Recovery and Resilience Facility funds (Treasury data) – 438.6 million euro or 1.0 % of GDP;
- adjustments to claims against debtors (Treasury data) – 370.6 million euro or 0.8 % of GDP;
- adjustments to exclude financial transactions (Treasury data) – 136.5 million euro or 0.3 % of GDP;
- tax adjustments using the time adjustment method (Ministry of Finance calculations) – 40.5 million euro or 0.1 % of GDP;
- adjustments for interest receivable (Treasury data) – 32.6 million euro or 0.1 % of GDP;
- adjustments for retained contribution into the single tax account (Treasury data) – 30.7 million euro or 0.1 % of GDP.
The main methodological adjustments and their contributions to the increase in the general government deficit were:
- adjustments to balance foreign financial aid flows (data from institutions involved in administering foreign funds) – 102.5 million euro or 0.2 % of GDP;
- adjustments for future payments from the second pension pillar (State Social Insurance Agency data) – 77.3 million euro or 0.2 % of GDP;
- adjustments for the use of Modernisation Fund resources (Treasury data) – 40.0 million euro or 0.1 % of GDP;
- adjustments to obligations against creditors (Treasury data) – 28.4 million euro 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 (Treasury data) – 27.6 million euro or 0.1 % of GDP;
- adjustments for interest receivable (Treasury data) – 24.3 million euro or 0.1 % of GDP;
- adjustments for differences between accrued and paid interest (Treasury data) – 21.6 million euro or 0.05 % of GDP.
Refer to the OSP database: VFV010, VFV050
Compared with 2024, general government debt increased by 1.4 billion euro, reaching 20.2 billion euro or 46.2 % of GDP in 2025.
The previously published general government budget data for 2022–2024 have been revised as a result of accounting for financial instruments under EU funds.
Eurostat is publishing the April 2026 notification results for all EU Member States on 21 October.
More information on the general government deficit and debt notification is available on the official statistics portal, under Government finance.
Methodological information
The October 2026 notification was prepared using data from the Ministry of Finance, the Treasury, the State Social Insurance Agency, the CSB, Riga City Council, the State Revenue Service, Latvijas Banka, and institutions involved in administering foreign funds.
1 Under Regulation (EC) No 479/2009, the general government deficit and debt notification is submitted to the European Commission twice a year, by 1 April and 1 October.
The notification data are used to assess whether EU Member States meet the criteria established by the Maastricht Treaty: the ratio of the planned or actual general government deficit to GDP at current prices must not exceed 3.0 %, and the ratio of government debt to GDP at current prices must not exceed 60.0 %.
2 Debt was consolidated within each subsector, but not across subsectors.
Media requests:
Public Relations Section
Email: media@csp.gov.lv
Phone: +371 27880666
More information on the data:
Sandra Kadiķe
National Accounts Data Processing, Analysis and Dissemination Section
Email: Sandra.Kadike@csp.gov.lv
Phone: +371 67366918
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