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“I would not blame the previous government for not preparing for a pandemic wave, because a pandemic wave actually complies with its laws and the consequences for the economy are ‘guaranteed’, in the bad sense of the word, to all states. The previous government has hidden some things, so the budget deficit is increasing compared to the original project, ”G. Nausėda told reporters.
He alluded to the need to have a plan on how to reduce the budget deficit in the future.
In the current circumstances, when Lithuania has to deal with the economic recession, which is a failure of the pandemic, we must apply an active fiscal policy, which means that public spending in those periods cannot be financed with adequate income, so the budget deficit is large enough.
It is important that we have a very clear plan for the coming years on how, as the economy returns to growth, we will reduce the budget deficit in a few years and achieve a balanced budget in the future. It is possible to do it, but we have to think about it today, ”said the President.
Mr. Nausėda also added that “we will have to return to the austerity regime as soon as circumstances allow.”
On Thursday, the Seimas considered the new government’s improved budget project for next year and decided that it will finally be voted on on December 22. In the draft budget, expenditures, including EU funds, amount to € 15,825 million. 11,250 million euros of revenue. euros.
Expenses exceed revenues of $ 4.573 billion. euros. The total revenue of the state budget, compared to the previous version of the state budget project, decreased by 132.8 million. euros. After the first revision of the state budget project in 2021, general government spending increased by approximately 1,139 million. euros.
Most of the additional funds: 933.5 million. It is planned to manage the consequences of the COVID-19 pandemic.
The general government deficit is expected to reach 7% in 2021. GDP and will be 2.1 percent. GDP point higher than in the original version. According to the Ministry of Finance, the structural deficit of the general government in 2021 will amount to 6.4 percent. GDP.
General government debt in 2021 will amount to 51.9 percent. GDP and will be 1.7 percent. point of GDP higher than the public debt formed in the draft budget.
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