Budget work continues despite government talks, but approval timing is unclear

Work on next year’s state budget is proceeding on schedule despite negotiations to form a new government, LSM reports. Finance Minister Māris Kučinskis and Saeima Speaker Edvards Smiltēns, both from the United List, said the processes were continuing in parallel.

Smiltēns said talks on forming a government involved bilateral meetings and discussions on numerous issues. He expects more clarity on the timetable next week. Prime minister candidate Andris Kulbergs declined to comment on Friday, saying he had to attend a government meeting and that the talks were too extensive for a brief response.

Smiltēns said parliament should ideally pass the budget by Christmas, which would also give municipalities clarity as they prepare their own budgets. He expects difficult negotiations over the measures to be included. Issues involving airBaltic and Rail Baltica, as well as financial risks, will also need to be addressed and could take time.

Smiltēns said the budget work was continuing under the current government, with ministries operating and the Finance Ministry preparing the budget. The financial situation and possible scenarios had already been assessed, allowing budget preparation and government formation to proceed at the same time.

Economist Edgars Voļskis has also urged lawmakers to pass the budget by Christmas so residents know what to expect before the new year. Kučinskis has rejected concerns about the preparation process but has not promised that the budget will be adopted this year.