On Thursday, 4 December, the Saeima adopted the State budget for 2026 and the budget framework law for the next three years in the final reading.

In order to reduce the consumption of products that are harmful to the environment and health, as well as to ensure additional revenue for the State budget, the Saeima on Thursday, 4 December, approved in the final reading amendments to the Law on Excise Duties.

In order to improve companies’ access to financial resources, reduce financing costs, and balance the tax burden between local and foreign investors—natural persons—while simultaneously increasing municipalities’ interest in attracting investment, the Saeima on Wednesday, 3 December, adopted amendments to the Law on Corporate Income Tax and amendments the Law on Personal Income Tax in the final reading.

A reduced value-added tax (VAT) rate of 12 percent will apply to certain basic food products starting from the middle of 2026, the Saeima decided on Wednesday, 3 December. The amendments to the Law on Value Added Tax are linked to the 2026 budget, and are intended to mitigate the impact of rising food prices on residents’ well-being.

In order to provide more support for families with children, the amount of several State social benefits will increase in 2026. This is stipulated by the amendments to laws adopted by the Saeima in the final reading on Wednesday, 3 December. The amendments are linked with the State budget for 2026 and the medium-term three-year budget framework.

To ensure a fair, equitable, and financially sustainable service pension system, on Wednesday, 3 December, the Saeima approved amendments to nine laws that will introduce gradual changes to the current service pension regulation starting in 2027. 

In order to secure additional funding for the development of national defence capacity and strengthening societal resilience, on Wednesday, 3 December, the Saeima adopted in the final reading the Law on the National Defence and Security Fund. The Fund will serve as a tool for attracting additional financial resources and their targeted use with the aim of strengthening national security. The new law is linked with the State budget for 2026.

Europe’s security and economic resilience today are closely linked with the United States (US), and transatlantic cooperation must intensify in light of current geopolitical challenges. This was emphasised by Jānis Vucāns, President of the Baltic Assembly (BA) and Head of its Latvian delegation, at a session of the Benelux Parliament in Luxembourg on Friday, 28 November.

In order to promote sustainable development and innovation in sectors of national strategic importance, as well as to strengthen the responsibility of ministries and institutions in meeting climate targets, on Thursday, 27 November, the Saeima adopted in the final reading the urgent Law on Climate Resilience and Economic Sustainability.

Emissions generated by the transport sector will have to be reduced by at least 16 percent from 2030 onwards, as established by the Transport Energy Law, approved by the Saeima in its final reading on Thursday, 27 November.