The Seimas will return the 2021 budget to be modified: this work will be carried out by the new Government, which intends to dismantle the DNA plan | Deal

On Tuesday, the Seimas released the first state budget project for 2021, which provides for 5 percent. of the budget deficit of the Gross Domestic Product (GDP).

At the Seimas session, the candidate for Minister of Finance Gintarė Skaistė drew attention to the need for funds, which are not foreseen in the 2021 budget. She appointed 67 million. 9.5 million euros for the additional indexation of pensions. 28 million euros are missing due to the recalculation of pensions, as well as in the field of education. although the approved laws foresee these costs.

G.Skaistė emphasized that no funds are provided for the support of the business affected by COVID-19: downtime, sickness benefits, etc.

The ministerial candidate reiterated that the budget deficit could be higher next year than the current forecast of 5%. of the Gross Domestic Product (GDP).

“According to the calculations of the Bank of Lithuania, LTL 670 million has been spent on measures for companies. Therefore, if at least half of those funds are used in 2021, the budget deficit will increase by 0.7%. and it stands at 5.7 percent. We have to take into account other things, when it comes to the income and expenses of the RRF fund, we can see that although it is possible to spend them until 2026, it is planned to spend a third of the funds for 2021. If this urgency is justified, there are many doubts ”, emphasized G.Skaistė.

Meanwhile, Kęstutis Glaveckas, who belongs to the Joint Group, emphasized that next year’s budget is in a high-risk area and there are many uncertainties, both about the DNA plan and about revenue collection, the possibility of adjusting revenue budgeting through taxes.

He also criticized the new incoming government for not having an alternative budget and an assessment of the situation, which it intends to do.

Consequently, everything will be in the current order, in the current management. There is room for improvement in the current budget, that is obvious. You won’t find a single budget without room for improvement, “he said.

In March-April, he asked for a budget review, reducing management costs, for example, evaluating the need for the Ministry of Energy.

Valius Ąžuolas, former chairman of the Budget and Finance Committee, who now belongs to the opposition, called for opportunities to borrow from municipalities and help small businesses.

Let’s not use phrases that there are no opportunities, that Europe does not allow. “Today, both Europe allows us to borrow and the indicators facilitate it,” he said.

The budget will be modified by the new government.

I. Šimonytė told reporters that traditionally in the election year the Seimas returns the budget to the already new government to improve it.

How 15 minutes They have already written, although the budget is already drilled, this time the parliamentarians have not forgotten the long tradition of asking for money in addition to next year’s budget for the renovation of their county schools, repair of ranches and swimming pools and even the construction of stadiums sports.

After evaluating the proposals of both parliamentarians and various ministries and institutions, an additional 700 million are requested in next year’s budget. euros. Most of the Seimas committees suggested returning the project for improvement to the Government.

“We have collected, as always, many proposals to finance many things, it is quite ironic that the former majority, who submitted many proposals to their own budget, so we can evaluate in all senses. Now, apparently, the proposals will be defended, although in other circumstances they may not be, “said Prime Minister I. Šimonytė, who was confirmed on Tuesday.

“It just came to our notice then.” The new government has very little time to meet deadlines and review the budget, “he added.

I. Šimonytė and the candidates for the government formed by her were the ones who expressed the most criticism. for the DNA plan, which should be carefully reviewed and adjusted. You can read more about it here.

“The budget must be realistic”

I. Šimonytė also says that next year’s budget should be realistic, including pension indexing expenses and managing the coronavirus situation. She claims that the current VAT collection plan is too ambitious, writes BNS.

In this case, the situation is a little different, (…) the income plan must be realistic, due to the funds of the so-called RRF (European Economic Recovery Plan – BNS), there should be no fog, the costs that the laws that are now are not included, although for the indexation of pensions, also covid the situation must leave a certain airbag that the government may need ”, he added.

I. Šimonytė also emphasized that the questions were raised by an overly ambitious tax collection plan, first of all the value-added tax, he also doubts that all deferred taxes are collected.

“The value added tax plan for next year seems really bold to me (…) The value added tax is probably the main source of the state budget. You can imagine this when we see a growth of 10%, I really don’t understand where such an ambition can be realized, it seems to me that the economic forecast does not confirm it at all, “he said.

“It is assumed that the provisions will be largely paid for next year, (…) but it is really a reasonable assumption, given the quarantine that has happened and it will have to continue, so I think there is a very big question here,” added. I.Šimonytė.

The second reading of the state budget will take place on December 17. Admission is also scheduled soon.

Plans not to save

The draft budget for 2021 prepared by the Ministry of Finance, headed by the incumbent Vilnius Shapoka, foresees a state budget deficit of 5%.

The state budget revenue projected for 2021 is 11,385 million. € 2,260 million, including € 15,499 million from the European Union and other international financial aid. euros.

It is true that the conservatives who are forming the new government do not rule out the possibility that the budget deficit will be greater, since, in their opinion, next year’s budget does not include support for business support.

Angel Gurría, head of the Organization for Economic Cooperation and Development (OECD), also spoke about this on Monday, saying that it would be risky to start reducing public debt without getting out of the crisis.

“It would be a big mistake … if we started making quick savings too soon, right after the crisis is over and we don’t get out well enough,” Gurría said.

The state budget project for 2021 does not foresee new taxes, but it maintains the commitments made previously to increase some benefits: from ten euros to 70 euros, increases in money for children for all families and up to 110 euros for older children and those who raise disabled.

The monthly minimum wage “on paper” is 35 euros: from 607 euros to 642 euros. Due to indexation, the average old-age pension increases from 377 euros to 404 euros, and the old-age pension with the required time of service, from 399 to 429 euros.