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Vilius Apoka, Minister of Finance, submits to the Seimas 2021. draft budget. Photo by Judita Grigelyts (V)
Presented to the Seimas in 2021. draft budget. Formally, the outgoing MPs will start to consider it, but the new Seimas will take over the budget from mid-November. The most important financial document of the year must be approved at the end of the year.
The text was supplemented by V.’s apocalyptic on debt, opposition opinions on biudetir’s photo gallery.
Finance Minister Vilius Apoka, who presented the draft budget to the Seimas court on Tuesday, said that the budget for 2021, along with all European countries, is at a similar level to the real situation this year.
The situation remains very uncertain, mainly due to the pandemic, but also due to some other circumstances of the Brexit process, geopolitical tensions and others. Therefore, we must act prudently, freeze increasingly erratic growth and pay close attention to managing public debt in the medium term, said V. Apoka.
But, according to him, the budget deficit of several billion euros foreseen in the preliminary draft must be modified slowly, not abruptly, because the commitments made must be fulfilled.
Debt to stabilize in 2022
State budget revenue is projected to grow 1.3% to $ 11.385 million year-on-year. Eur, and discounts will increase by 21.2% to 15.49 billion. EUR. The state budget deficit is expected to reach $ 4.105 billion next year. 3.3 times more than what was approved this year (1,248 million euros).
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At that time, the general government deficit, including the state budgets, Sodra, the Mandatory Medical Insurance Fund (PSDF), and various foreign funds, should reach 5% of gross domestic product (GDP) next year. The annual deficit of public administrations is estimated at around 8.8% of GDP.
GDP is expected to grow by approximately 1.5% and 3.1% next year.
The Ministry of Finance forecasts that public debt will reach 45.6% of GDP by the end of the year, 48% next year and in 2022-2023. it will stabilize at 49.4%.
Representatives of the current government affirm that the budget deficit is sustainable.
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The opposition has comments
Opposition officials say next year’s budget is the main question of what will be done with the borrowed money, including money received from the European Union.
Investments in the future should produce as much gr. But at the moment, there is a warning that European funds are not being invested very efficiently again, mainly by allocating infrastructure, that is, blocks, but not capital, said Aurin Armonait, chairman of the Freedom Party.
There is a simple question, what are we going to do with that borrowed money? And this is not just the borrowed money, but also the projected EU Recovery Fund. Since there is a short period of time to spend this money, there is a very high risk that we will simply put a lot of money in the economy, raise prices and then we will not have the change that we could have, said Ingrida, the main conservative candidate in the elections of the Seimas.
He assured that if a new center-right government is formed shortly after the Seimas elections, it will comply with the social obligations assumed by the current government, and may even deepen some, that is, pension rates, increase child money and wages. minimum. But at the same time, according to I. imonyts, efforts will be made to revise the European investment budget and guidelines so that they are used as efficiently as possible and contribute as much money as possible.
Some parliamentarians questioned whether enough money would be allocated to municipalities next year, as well as to the Road Fund and other essential needs.
The Finance Minister assured the Seimas court that the municipalities and the funds would not suffer economically and that if some of the expenses were reduced, the conditions would be created to obtain additional loans to cover basic needs.
The government did not accept the tax change
The current government does not provide major tax changes, along with the budget. However, representatives of the Social Democratic opposition in the Seimas, together with the budget, approved an increase in the rate of corporate income tax from 15 to 20%.
The monthly minimum wage will increase from 607 to 642 euros next year, and the child’s money from 60 to 70 euros. Pensions should increase by almost 7%.
It is proposed to increase the base amount of the official salary from 176 to 177 Eur next year, so the salary for civil servants, civil servants, employees of budgetary institutions, politicians and judges will be slightly increased.
Will be adopted by the new Seimas
Sodra’s budget revenue for next year, which was also presented to the Seimas on Tuesday, will reach $ 5.063 million. € 5.002 billion The budget surplus should reach € 61.3 million next year. EUR.
A draft PSDF budget is also presented. By law, you must be balanced as much as your anticipated income and you must be ill. In the event that the budget receives unplanned income during the year, it is reserved. 2021 The PSDF budget will reach 2,370 million. EUR.
According to economists, the proposed budget option for next year gives Lithuania an opportunity to transform the economy and secure future growth potential, but also poses the risk that misused funds could lead to overheating and higher inflation. .
2021 The state, Sodra and PSDF budgets will be scrutinized by the current Seimas, but the new legislature is slated to take over half the deliberations in November. Chaldea’s final budget approval is scheduled.
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