Latvia's Ministry of Finance has published its 2026 priorities, centred on strengthening the sustainability of public finances while supporting an investment-friendly environment. The agenda combines reforms to budget planning, transparency, procurement and public-sector financial management with institutional changes affecting municipal finance and financial-sector supervision. The ministry plans to introduce a results-based state budget structure in the 2027 budget law and align it with a new development planning cycle from 2028, alongside annual spending reviews with spending reduction targets and efficiency indicators and a requirement to fully review each budget sector at least once every four years. A new digital budget planning and financial management solution is due to deliver its first phase by 31 May 2026, with a second phase planned by 2029. Work on a revised municipal financial equalisation model is expected to conclude by 1 March 2026, with real estate tax (NIN) revenues remaining outside the equalisation system and other changes aimed at simplifying calculations and removing education-related inter-municipal settlements. Public procurement reforms include expected parliamentary approval of amendments to the Public Procurement Law in early spring 2026, development of a unified digital procurement environment and publication of contracting authority rankings from March 2026. The ministry is also advancing centralisation of state accounting, which it says already covers 109 institutions, with additional ministries and their subordinate bodies planned to join from 1 January 2027. On financial-market oversight, the Ministry of Finance is progressing a single licensing and supervision framework for consumer lenders, with the Cabinet of Ministers planned to approve in January 2026 the transfer of registration, licensing and supervisory functions from the Consumer Rights Protection Centre to Latvijas Banka. Draft legislative amendments are due by 30 April 2026, with parliamentary approval targeted by end-2026 and the operational transfer planned for 1 January 2027, including oversight of unfair commercial practices and advertising. The programme also highlights planned state-budget-backed EU and Recovery Fund investments of up to EUR 1.4 billion in 2026, Recovery Fund milestones due by August 2026, and integration of the Lottery and Gambling Supervisory Inspection into the State Revenue Service from 1 April 2026.

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