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On Wednesday, the draft budget budgets for the state and municipalities, Sodra and the Mandatory Health Insurance Fund will be discussed at the government meeting.
They are said to have identified four priorities: targeting the most vulnerable, slowing spending growth, investing in the future, and managing debt.
Moderate increase
As of January 1, 2021, the universal family benefit increases by € 10 to € 70. This is provided for in the Child Benefits Act.
The MMA is increased by € 35, up to € 642 “on paper” (about € 467 “on hand”). This amount is calculated according to the formula of the Bank of Lithuania.
In 2021, the average annual old-age pension with the required time of service is expected to be € 30 more, at € 428.9. Much of this increase is due to the indexation of pensions (the new pensions are also slightly higher).
The total spending of the state budget in 2021 will be 15.49 billion. and revenues of 11,380 million euros. euros. Traditionally, most of the funds will go to health and social care, education and the economy.
According to the Ministry of Finance, this year the budget deficit will reach 8.8 percent. gross domestic product. It is expected to decline to 5% in 2021 and 2.7% and 1.6% in 2022 and 2023, respectively.
Public debt is estimated to reach 45.6 percent this year. GDP, 49 percent in 2021 and approximately 50.3 percent in 2022 and 2023.
Differences
Together with financial assistance from the EU and other international financial assistance, loans exceed revenues by € 4.1 billion. euros.
In terms of investment areas, the largest amounts are planned for transport and communications (562.6 million euros), education (202.9 million euros), public protection (162 million euros), national defense (117.4 million euros), environmental protection. protection (110.5 million euros). It is planned to collect 4.1 billion euros from value added tax (VAT) next year. 1,570 million euros in special taxes. personal income tax (PIT) – 1,840 million. almost 763 million. euros.
According to the Ministry of Finance, in 2021, revenues will grow by 531 million. than expected for 2020. At that time, spending will grow to $ 3.138 billion next year. euros.
However, given the funds allocated for the management of Covid-19, the costs will be even slightly lower next year compared to this year.
© Ministry of Finance
Impact of the DNA plan
Next year’s budget is heavily influenced by the DNA of the Future Economy plan. In total, it is estimated that the new actions of the plan amount to 1,700 million euros. of which EUR 1.3 billion must be financed by the European Union.
As you know, Lithuania must submit its national economic recovery plan to the European Commission before October 15th. The EU Resilience and Recovery Mechanism, which it administers, should provide € 813 million in funding. euro DNA plan.
€ 419 million It is expected that € 92 million will be covered by the 2014-2020 multiannual financial perspective (including the React-EU fund). 29 million euros should come from the 2021-2027 perspective; 199 million euros of co-financing. euros – from the state budget.
As a result of the DNA plan, funding for some ministries and other budget institutions will increase significantly in 2021. However, this funding has not yet been approved by the EC and the source of funding should not be changed.
The draft budget for 2021 has been drawn up on the basis of the economic development scenario of the Ministry of Finance, in which Lithuania’s GDP is expected to fall by -1.5% this year and grow by 3.3% next .
The ministry forecasts that inflation will rise 1.8 percent next year, the unemployment rate will reach 7.9 percent, wages will rise 4.9 percent and the average monthly salary on paper will reach 1,426.2 euros (about 912 euros). to the weapons”).
World GDP is expected to decline by -4.9% this year, -8.3% in the EU and 5.4% next year. and 5.8 percent.
Budget projects are due to be submitted to the Seimas by the end of this week. The final decision on the budgets for 2021 will be made by the new government after the end of the Seimas elections.
13 pension
Before the discussion of the draft budget in the Government, the views of Prime Minister Saulius Skvernelis and Finance Minister Vilius Šapoka on the so-called 13th pension differed.
S. Skvernelis stated that if the Seimas adopts a law on the annual payment of 200 euros, the Government will have to find funds for it. This is estimated to require around 180 million. euros.
It will be added.
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