Daugavpils, Latvia – City officials have approved a budget of €164.23 million for 2026, signaling a continued focus on infrastructure, education, social welfare, and cultural initiatives. The approval, which took place during a Daugavpils City Council meeting on December 29, 2025, represents a commitment to stable development despite ongoing economic constraints.
The budget is a 7.6 million euro increase over previous projections, according to the Daugavpils City Council. Mayor Andrejs Elksniņš emphasized the city’s ability to manage resources responsibly even as maintaining its development trajectory.
“Latvian municipalities are working in conditions where the priorities of the state budget are increasingly focused on security, defense and fiscal discipline, while the resources available for regional development remain limited,” Elksniņš stated. “In these circumstances, the task of the Daugavpils municipality is to ensure the stable performance of basic functions, while not losing the pace of development and the ability to attract investment.”
The early approval of the 2026 budget – finalized in December rather than late January as in previous years – is intended to facilitate timely financial planning. The city has already implemented structural reforms in 2025 aimed at streamlining operations and improving financial management, including the creation of a combined Education, Youth and Sports Administration and the consolidation of cultural and museum institutions. This move underscores the city’s commitment to efficiency and strategic resource allocation.
According to official legal documents, the budget allocates €153.58 million in revenue, €157.93 million in expenditures, and €4.35 million in funding. An additional €41,755 has been earmarked for donations and gifts.
In a separate decision, the Daugavpils City Council also voted to dissolve the City Planning and Construction Department, as reported by Daugavpils.lv. The rationale behind this restructuring was not immediately available.
