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In Seimas, M. Macijauskas pointed out that the deficit of the balance of the general government in 2020 will amount to 10.9 percent. GDP and all subsectors will have budget deficits. Therefore, according to him, it is especially important to focus government spending on those areas that will bring the greatest benefits for the country’s economic development.
“Commitments should not be made without providing resources for their sustainable compensation, and economic stimulus measures must be used specifically, focusing on long-term goals,” said the state auditor.
According to him, public debt is expected to increase to 50 percent this year. of GDP.
“Relatively stable government debt before the economic downturn caused by COVID-19 is estimated to reach 50% in 2020. GDP level and close to 60%. Maastricht Debt Criterion,” said the State Comptroller.
M. Macijauskas emphasized that he sees adjusting the budget as convenient.
“2020 an amendment to the law on indicators we would consider suitable as public auditors. In this way, we would seek clarity, transparency and fiscal risks in budget planning, which are determined by the idle practice of reducing state budget expenses, by allocating part of them from the administration of the borrowed funds. In saying this, we trust in the requirements of fiscal discipline (…) “, said M. Macijauskas.
M. Macijauskas is also asked what are the main problems that the State Audit Office sees without the authorities adjusting the 2020 goal, budget, and allocating the billions of funds lent, either only by government resolutions or by separate laws.
“When part of the planned financial indicators of state expenditures are not shown in the law or the expenses of the state budget are reduced, some of them are planned to be financed with borrowed funds, distorting the balance of expenses and income of the state budget . Therefore, there is a risk that fiscal discipline requirements will be violated. Furthermore, by taking on additional debt, we see risks to the long-term sustainability of the debt.
I will also emphasize that the fiscal authority in 2019. In the evaluation of the financial indicators of the general government, the decision to reduce the expenses of the state budget, finance part of them with borrowed funds, identifies inappropriate practices, ”comments the Auditor General.
Parliamentarians are interested in the gaps in legal regulation seen by the State Audit Office and how they would propose to address them so that funds lent for emergency management do not become coverage for the irresponsible and uncontrolled use of this money .
“All costs, whether they are financed with borrowed funds, whether we have an emergency or not, must be allocated in a transparent and efficient manner and to achieve the established objectives. (…) The current situation of large injections of funds The public only highlights the importance of the recommendations we have made.
In recent years, we have presented findings in health, education, social security, economics, business promotion, and other areas of the public sector. The European Commission and other international experts point out these areas for improvement, ”says M. Macijauskas.
The opposition says that without reviewing this year’s budget, the rulers are violating the law, and the leader of the rulers Ramūnas Karbauskis calls it an attempt to tie the hands of the Government and the Seimas so that it is not possible to make quick decisions, he writes BNS.
Simon Krėpšta, the chief adviser to the president, has also stated that this year’s budget needs to be revised.
Vitas Vasiliauskas, chairman of the Board of the Bank of Lithuania, also says that the government’s financial support to the population and companies affected by the coronavirus crisis should “be budgeted”.
According to him, this year’s budget deficit could be more than 10 percent. gross domestic product (GDP) if the authorities manage to implement all the planned measures to address the effects of the coronavir crisis.
Saulius Skvernelis
After the Bank of Lithuania reiterated on Tuesday that the country’s budget should be reviewed, Prime Minister Saulius Skvernelis said the government did not plan to do so this year.
He said the government would present a report describing the ways the funds were used during the pandemic.
“The budget is a financial document that discusses and plans in which areas the state will invest, what decisions will be made with the financial commitments. The Seimas has allowed the Government to do so, all funds are distributed in accordance with the laws adopted by the Seimas. What the government will have to do is make a report on where the funds are spent or invested, “said the prime minister.
State budget revenue approved for 2020 (excluding EU funds) amounts to 9,548 million. 11,530 million euros with EU funds. euros
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