V. Šapoka: It would be possible to reduce the budget deficit, but only by cutting wages in the public sector Business

During the Government hour held at the Seimas on Thursday, E. Gentvilas pointed out that the Lithuanian state budget deficit projected in 2021 exceeds even the average of the EU countries.

“The projected average budget deficit of the EU countries for next year is 4.8 percent, Lithuania – 5 percent. There is still talk of a pension number 13 that would increase even more.” What consequences would you plan for Such a budget, if it could lead to a tax increase in the future, or will it reflect the result of a lot of money spent during this period? “Asked the MP.

By the way, Lithuania, which is planning a budget deficit similar to that of other EU countries, should be among the European countries that have best weathered the crisis and whose GDP will contract the least in 2020.

At that time, Finance Minister V.Šapoka emphasized in the government hour that average values ​​do not always reflect the situation.

“Here, like the average temperature of the room or, as Professor Glaveckas says, the average depth of the Nemunas, which exceeds 30 centimeters, but we would probably not dare to cross,” the minister compared.

He believes that the budget deficit must be reduced gradually, otherwise the obligations of previous laws (indexation of pensions, children’s money) should be met. Furthermore, public sector wages should be reduced.

“Reducing the deficit is, of course, possible, but I don’t think anyone is doing it at the moment, because then it would be necessary to reduce the salaries of teachers, professors, health professionals, doctors, researchers and others. As can be seen from the draft budget, no major new commitments are made, ”said V. Šapoka.

According to him, the chosen path is optimal because it provides a clear plan to stabilize debt and debt growth.

“The growth of the debt will stabilize at 50% of GDP and will decrease in the future. I believe that the Seimas and the Government will approve the project because it is good,” expected the minister.

Asked how much it would cost to borrow

The liberal Simonas Gentvilas argued in an hour of government in the Seimas that a sustainable budget for three years allowed Lithuania to borrow at a record rate, but three months before the elections, immediate increases in spending and unsustainable budgets and investments did not competitive companies reminded him of 2008. The parliamentarian was asked what interest he would have in borrowing the 5 billion planned for next year. euros.

Given this, Prime Minister Saulius Skvernelis reiterated that due to responsible budget planning and compliance with fiscal discipline, he managed to borrow this year at interest rates 17 times lower than in 2009. It is true that the question of what interest is planned borrow next year did not respond.

“Debt management costs are sometimes lower than they were then,” the prime minister said.

Prime Minister: Perhaps the Finance Minister should be told

Andrius Mazuronis, who belongs to a mixed group of members of the Seimas, asked during the government hour how the Prime Minister values ​​the statements of the Minister of Finance on the thirteenth pension. It will be recalled that V. Šapoka stated that there are no funds for long-term commitments, although the “peasants” have not yet abandoned this idea.

S. Skvernelis stated that the Minister of Finance had expressed his opinion, but stressed that the Seimas would have the last word.

“The answers from finance ministers are usually ‘No, no, no’ and only once: ‘Yes’. The Minister did not speak on behalf of the Government, but on his own behalf, but the final decision will be made by the Seimas. I did not punish the minister, although perhaps I should have, “joked the prime minister.

The government approved the state and municipal budget for 2021 on Wednesday, whose deficit will reach 5 percent. of the Gross Domestic Product (GDP).

Although the project includes prior commitments to increase benefits such as money for children, there are no funds for the thirteenth pension. However, Prime Minister Saulius Skvernelis stated that the ideas would not be abandoned, that the Government would seek funds for this benefit when the Seimas adopts the relevant law.

Although no new benefits are proposed in the state budget for next year, it is proposed to maintain the previous commitments to increase some benefits: the money for children increases by ten euros to 70 euros, the average old-age pension and the increase in the minimum wage. Also, free meals are introduced for all second grade students.

The state budget revenue projected for 2021 is 11,385 million. including 2,260 million euros. 15,490 million euros for the European Union and other international financial aid. euros.

The state budget project for 2021 will be considered by the Seimas.