In Latvia, new state spending is expected to be limited by the end of the year: purchases, research, and conferences may be cut

By the end of 2026, Latvian state institutions may face significant restrictions on their ability to enter into new contracts and assume additional financial obligations. This plan is outlined in an information message prepared by the Ministry of Finance, which has already been presented to the government. The proposed measures are part of the preparation for the state budget project and are aimed at curbing the growth of expenditures in the last months of the year. The Ministry of Finance believes that this will strengthen budget discipline and focus resources on the most important state tasks. If the proposals are approved, ministries and other central state institutions are recommended to refrain as much as possible from new contracts for the supply of goods, consulting services, research, and other types of outsourcing. Exceptions are only provided for cases where a contract is necessary for the uninterrupted performance of state functions, compliance with legal requirements, or completion of procurements announced before October 1. Additionally, agencies will be instructed to review their expenditures and, if possible, postpone those that are not critically important. This includes, in particular, seminars, conferences, representational events, research, consulting services, as well as the purchase of new office equipment and machinery. In fact, this is about temporary savings on expenses that do not directly affect the operation of state institutions and the provision of essential services to the population. Increased control will also apply to large procurements. To enter into a new contract worth over 50,000 euros excluding VAT, separate approval from the Prime Minister, the relevant minister, or an authorized official will be required. Before signing such contracts, institutions will have to assess their necessity and impact not only on this year's budget but also on future expenditures. The government also intends to recommend a similar approach to independent state institutions, state enterprises, universities, municipalities, and other public organizations. In turn, the State Audit Office is proposed to check compliance with these restrictions when preparing the annual report for 2026. At the same time, the Ministry of Finance will continue working on next year’s budget. By November 10, the ministry plans to update fiscal forecasts considering the new macroeconomic situation and, together with the ministries, review initiatives for which funding sources have not yet been identified. The Ministry of Finance also reminds of the basic principle of budget policy: permanent state expenditures can only be introduced if there is a permanent source of funding for them. Furthermore, the ministry suggests not to submit initiatives that have received a negative opinion from the Ministry of Finance and are not financially covered for government consideration. Thus, the authorities hope to reduce less priority expenditures and prevent additional burdens on the state budget at the end of the year.