On Wednesday, 21 January, members of Riga City Council approved the capital's budget for 2026, with families, education, security, economic growth and infrastructure development as the main priorities.
"Already in the summer, when we received the first budget estimates, we realised that the local government would have the same or even less money than last year, while Riga's needs continue to grow. Our challenge was to cover these needs more intelligently and responsibly with existing resources. This is therefore not a budget of extravagant promises, but a real, human budget in relatively difficult circumstances. As a father of three, the most important thing for me is that Riga becomes a safer and more humane city where families choose to live, stay and return," said Viesturs Kleinbergs, Chairman of the Riga City Council. "Our priorities for traffic are clear: repaired bridges and safe streets. We have signed a contract for the reconstruction of Vanšu Bridge; this year we will open the renovated Zemitāna Bridge and complete the Kundziņsala overpass. At the same time, we have budgeted for design work on other bridges to ensure that future work starts on time and in high quality. But everything else is meaningless if we do not have safe traffic, which is why this budget includes new pedestrian crossings, lit streets and traffic calming in school zones. It is one of the most important choices for this budget. This budget is about a city where people feel safe, confident and welcome," continues the Mayor.
The pressure of the employment sector on remuneration has decreased and the state administration in general moves towards increased efficiency. Remuneration is one of the key issues in budget planning. The Ministry of Finance has adequately assessed the negative impact of the tax reform on municipal budgets, and personal income tax (PIT) performance data are stable, allowing for long-term financial planning and prudent development of new services. Interest rates on loans have stabilised over the past year, avoiding dangerous fluctuations and allowing for an optimistic outlook on commitment expenditure in view of the city's infrastructure ambitions, the local government's financial experts conclude.
Budget revenue
Riga City Council has planned revenues of EUR 1.5 billion in this year's budget, which is by EUR 37.6 million more than was planned last year. The revenue increase is mainly due to a projected increase of personal income tax revenue, based on the macroeconomic forecasts of the Ministry of Finance.
Budget expenditure
Total budget expenditure is planned at EUR 1.7 billion, just by EUR 8.3 million more than last year. The stabilisation of expenditure is due to the pause between the major infrastructure projects – the Kundziņsala overpass will be completed in spring, while the Vanšu Bridge reconstruction project is only in its initial stages and a loan is planned for the construction of these projects in agreement with the government. Riga's contribution to the Local Government Equalization Fund will decrease slightly in 2026, amounting to EUR 137.3 million.
Remuneration
Remuneration rises in local government can only be accompanied by structural reforms, job reviews and efficiency improvements. The salary rates of the Riga City Council Chairman, his deputies, the chairpersons and deputy chairpersons of the council committees and the members of the Council will remain unchanged in 2026 and will be maintained at the level of 2023.
Significant limits on remuneration in 2026 are set for allowances, gratuities, bonuses and overtime pay.
From 1 January 2026, in line with the changes to the Cabinet Regulation on the Minimum Monthly Wage during Normal Working Hours and the Calculation of the Minimum Hourly Rate of Pay, the local government has earmarked EUR 2.7 million to increase the monthly salary for employees from EUR 740 to EUR 780. The minimum wage changes affect around 4,700 employees in the local government. The education sector has the highest share of employees in these job groups. The tax-free minimum has been increased from EUR 510 to EUR 550 per month.
This year, an increase in the salaries of the Riga Municipal Police employees who provide basic functions, Riga Municipal Orphan’s and Custody Court employees, Riga Children, Youth and Family Social Support Centre and Riga Social Service from 5% to 10% is foreseen.
Investment and traffic
Riga City Council plans to invest more than EUR 200 million in education, transport and urban development in 2026. Of this amount, EUR 78 million is earmarked for major infrastructure projects, including the renovation of the Vanšu, Jorģa Zemitāna and Air Bridges, as well as the Kundziņsala overpass and the 4th phase of the Southern Bridge. And EUR 5.3 million will be spent on urban landscaping and improving pedestrian safety – 20 new pedestrian crossings, 40 improvements to current crossings, five safe school zones and new cycling infrastructure.
Security – additional EUR 2 million for police remuneration
"One of my priorities will be to strengthen security in Riga. This year we will increase the remuneration of Riga's municipal police officers by EUR 2 million, with a 16% increase for policemen and an 8%-10% increase for inspectors. In early 2026, an investment project for the establishment of a Police Integrated Control and Video Surveillance Centre at 26 Lēdurgas Street will be completed to ensure a higher crisis response capacity. In the field of civil protection, we will develop and improve 146 municipal bomb shelters together with state funding, as well as launch a co-financing programme for the improvement of basements in apartment buildings," says Riga Deputy Mayor Edvards Ratnieks.
Riga City Council will continue to fund the activities of the Ukrainian Support Centre.
Mr Ratnieks informs that significant investments in the infrastructure of educational institutions are also planned this year. The construction works of Mežaparks Primary School will continue (EUR 15.3 million), as well as the renovation of the outdoor stadiums of five educational institutions – Riga Dārzciems Secondary School (Vietlavas Street), Riga Jaunciems Primary School, 45th Secondary School, Riga Anniņmuižas Secondary School, Riga Ziepniekkalns Secondary School – will be completed. In addition, the outdoor sports infrastructure and landscaping of the territory of the Ita Kozakevića Polish Secondary School in Riga will be renovated with the financial support of the "Help Poles in the East" Foundation.
"The 2026 Riga City Budget is, in my opinion, a budget for the completion of the previously started traffic infrastructure projects and for the unity of society. In addition to the major traffic flow improvement works already underway and vital for the capital, the most important task of this term of the Riga City Council is to fully and meaningfully implement the principles of the United School, because only in this way will we become a cohesive society in Riga and Latvia. This year's innovation will be a pilot project where schools will be able to organise educational and sporting activities for primary school children after the end of the school year until Midsummer – primarily this will be one of the tools available to school principals to promote the implementation of the United School, but it will also be a practical support for families who often find it difficult to plan their children's summer holidays," says Vilnis Ķirsis, Deputy Mayor of Riga. "In the social field, the reform of the Riga Social Service will be an important work this year, which will go hand in hand with improving the remuneration and working environment for social workers. In culture, the central event of the year will be the celebration of Riga's 825th birthday, which we are planning to turn into an ambitious and colourful month-long event, creating events that will attract at least 300,000 visitors," says Mr Ķirsis
Education
To promote the learning and use of the Latvian language in Riga schools and among pupils, an additional EUR 3.9 million has been allocated to support teaching in the official language in pre-school education institutions and schools.
Riga will increase the co-financing for parents of children attending private pre-school education institutions from EUR 450.12 to EUR 501.91 for children up to the age of four, and from EUR 297.63 to EUR 351.98 for children of compulsory preparatory age.
Social field
Compared to the 2025 budget, an additional EUR 16.2 million has been allocated for various social expenditures this year, bringing the total amount allocated for family and social policy in the Riga City Budget to EUR 158.2 million.
Support for families and children is significantly extended, providing EUR 1.3 million more for the 2025 Council decision on the newborn allowance increase. The local government is also extending services for families with children.
In response to the ageing population in Riga, additional funding will be provided in 2026 for home care and social care centre services to ensure the fastest possible access to this service. Major investment is planned in the renovation of municipal social care centres.
Culture, sports, and youth
The key cultural events of Riga 2026 will be held in the context of the 825th anniversary of Riga's birth, for which adequate funding has been allocated.
Infrastructure and economic growth
"To ensure the sustainability of traffic organisation and infrastructure, we plan to develop public transport at transport hubs and near railways, as well as to support investment in mobility (transfer) points and new parking facilities. Riga City Council will also continue to take targeted measures to ensure the opening of the waterfront to both residents and businesses," said Riga Deputy Mayor Māris Sprindžuks.
In 2026, reforms will be implemented to improve the business environment and attract investment, including amendments to the Riga Historic Centre Protection Zone to speed up the implementation of development plans and reduce the administrative burden for developers and entrepreneurs, as well as changes to the binding regulations on terraces, shop windows and rent for the use of road features.
At the same time, this year the functions of the Riga City Council Urban Development Department will be reviewed to reduce the administrative burden on the Building Authority and the Department.
Information was prepared by Sindija Grāvere, Head of External Communication Division of Riga City Council, e-mail: sindija.gravere@riga.lv.
