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Thus, the former prime minister commented on the decisions of the new government to increase spending in next year’s budget by almost 1,200 million. euros. Almost a billion of these funds will be used to combat the consequences of COVID-19.
The government anticipates that the deficit of the public administrations will reach 7% next year. Gross domestic product (GDP).
“That 7 per cent. Presupposes a possible uncontrolled growth of the debt and major problems in the formation of the budget for 2022,” S. Skvernelis told reporters at Seimas.
Already 5 percent. the deficit was on the brink.
“Both tax increases and public funding will have to be reduced,” he added.
The government of S. Skvernelis, which presented the budget for 2021, predicted that the deficit would reach 5 percent.
According to him, the two percent difference at this location is significant.
Photo by Sigismund Gedvila / 15min / Saulius Skvernelis
“Already 5 percent. The deficit was on the brink,” said S. Skvernelis, adding that even then the European Commission had to provide clear data on the sustainability of Lithuania’s public finances.
I.Šimonytė: the previous government concealed the deficit
Prime Minister Ingrida Šimonytė stated that S. Skvernelis’s comments on the budget are even funny for her.
According to her, the previous government should have budgeted for these billions of euros, but chose to “hide” these expenses, as well as the projected deficit.
Today’s debate is neither that nor about that.
“Today, in my opinion, it is very important to tell the truth and include those expenses that were disguised after the different budgets of the previous budget, realizing that the situation could be more serious,” said the Prime Minister in the Seimas.
“The fact that Prime Minister S.Svvernelis has put some of the spending on the debt limit does not change the size of the deficit,” he added.
According to I. Šimonytė, for these reasons, the former prime minister’s statements “are in a certain sense (…) funny”.
She rejected S. Skvernel’s statements about less long-term public sector financing, because, according to her, the ratio of public spending to GDP is already too low today.
Meanwhile, the new taxes could be discussed, not to tighten their belts after the pandemic, but to keep the public sector in if it is decided to increase its allocations as part of the change ambitions of the new center-right government.
“If there is a lack of funds to maintain that farm, (…) then the taxes will have to be discussed,” said I. Šimonytė.
Sigismund Gedvila / 15min photo / Ingrida Šimonytė
“It just came to our attention then. The most important thing today is to manage the situation, protect our hospitals and protect human lives.” I no longer care much about the deficit that is projected for next year, because I see a situation that it is brewing, “he added.
The Seimas is due to consider the new government’s amended state budget later on Thursday.
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