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On Wednesday, at the Government meeting, the budget projects of the state and municipalities, Sodra and the Mandatory Health Insurance Fund for 2021 were discussed and approved.
They are said to have identified four priorities: targeting the most vulnerable, slowing spending growth, investing in the future, and managing debt.
The planned changes will take effect if the Seimas and the President approve the budget proposals.
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 supplementary child benefit for children with disabilities, as well as for children from large or low-income families, will amount to 41 euros. This means that the money for children with a supplementary benefit for children with disabilities, children from large families or low income 111 per month.
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). Vthe total pension would reach approximately 404 euros. Currently, the average old-age pension with the required length of service is 399 euros, and on averagepension – 377 euros.
According to the Ministry of Social Security and Labor, the salaries of civil servants, civil servants, employees of state and municipal budgetary institutions, politicians and judges should increase slightly next year, since the basic amount of the official salary increases to 177 euros. The minimum wage ratios for employees with the lowest income levels A, B and C budget would also increase.
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. The government plans to borrow around 5.41 billion in the national and international market next year. euros.
There is no real difference
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.
“The budget for 2021, together with all European funds, is roughly at the same level as the actual situation this year,” Finance Minister Vilius Šapoka told the government meeting on Wednesday.
© Ministry of Finance
Excluding the impact of Covid-19, revenues will drop 1.3 percent next year compared to those approved this year. (145,369 million euros) and spending will increase by 21.2%. (2,712 million euros). The government has not adjusted the 2020 budget, so the data provided so far does not show how the 2021 budget will differ from actual state revenues and expenditures for this year.
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 1,600 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.
© Ministry of Finance
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 V. 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.
Sodra’s draft budget presented to the government on Wednesday indicates that revenues will reach 5.02 billion next year. EUR (2% more than this year) and expenses: 5.01 billion. EUR (10% more).
The budget of the Compulsory Health Insurance Fund estimates that income and expenses in 2021 will be 2,370 million. EUR, that is, 2.83%. more than this year.
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