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“There are really two main reasons why the peasant group cannot support the budget. The first reason was a mechanical increase in the public deficit. This is a very bad phenomenon, because it will worsen the government’s debt rating, which means that we will have to pay more for the borrowed money, ”Valius Ąžuolas, a member of the peasant faction, told reporters gathered at the Seimas on Tuesday.
V. Ąžuolas, who was the chairman of the Budget and Finance Committee for the last term, assured that the first budget project presented to the Seimas by the Government of Saulius Skvernelis was intended to allow borrowing for the coronavirus situation as it was during the first wave.
“What was the situation? In the spring, even Landsbergis, including the opposition, supported the proposal, relying on the Squirrel Government. What’s the score? We find 6 billion. of which 3 billion euros were used for loans. only half of the funds.
The current path makes me very sad. This means that the rulers do not trust the Šimonytė Government if they do not want to give them the same opportunity to borrow and use kovidui funds needed. Whatever program they immediately scheduled, they allocated just $ 1 billion. euros covid management, when we know 3 billion was needed this year. euros covid administration. It is immediately clear that those billion will not be enough, ”reasoned V. Ąžuolas.
The parliamentarian speculated that the government will have to return the budget to the Seimas for it to reconsider, when the necessary funds for the management of the coronavirus will have to be included.
“And this is a very bad sign as a state, as a government, it introduces mistrust in the government,” said the peasant.
The second reason why the peasant group will not support the budget, according to V. Ąžuola, is that the government did not include the money from the European Recovery Plan in the budget.
Saying that they do not exist yet, although many European countries, such as Estonia, Italy, France, have included them in income since February 1. he already plans to release them, ”said the politician.
According to V. Ąžuolas, for example, Estonia since February 1. 30 million from this fund. will go towards renovating and purchasing medical facilities.
“Doesn’t Lithuania need it? It seems really necessary to me. For these two reasons, we cannot support the budget,” said V. Roble.
It will control the coronavirus first, then the debt
“When I listen to the former rulers, I feel such a feeling of foreign shame. When you try to say that the budget deficit that was drawn is 5%, it makes some sense, ”the conservative Finance Minister G. Skaistė responded to the criticisms of V. Ąžuolas.
According to her, the previous government has allocated 3,400 million for the management of the coronavirus. of which EUR 2.8 billion were used. euros. According to the minister, if the Government of S. Skvernelis, in case of success in the Seimas elections, planned to continue managing the pandemic in this way, then the budget deficit could have increased to 10%.
G. Skaistė assures that not all the expenses assigned by the previous cabinet were related to the management of the coronavirus, because some of them, for example, were destined to global amounts.
“The expenses planned today are optimal, according to the measures that are planned, the expenses are planned for half a year, we hope that during that time fight he will manage, ”said the minister.
If the situation does not stabilize as planned, according to G. Skaistė, it will be possible to adjust the expenses for coronavirus in the spring session of the Seimas. According to the minister, the primary task of this government is to control the coronavirus, and the growing public debt is a matter for the coming years.
“That indebtedness is not just a matter for Lithuania, it is done by the entire European Union, therefore, the decisions will be common, the measures will be taken into account the common international context. <...> The cost of borrowing is very low. The question today is how much is being borrowed and whether those costs make sense. Do they really contribute to the economic recovery, or are they more destined to eat and build roads, as was the case at times before, ”said G. Sklaistė.
According to her, it is planned to borrow 5.5 billion next year. euros.
MPs intend to pass the 2021 state budget on Tuesday. Estimate the deficit of public administrations, the difference between expenses and income, at 7%. gross domestic product.
The draft budget was prepared by the outgoing government of Saulius Skvernelis, but it was still adjusted by the Cabinet of Ministers of Ingrida Šimonytė.
Next year, an average of 9 percent. Old-age pensions will be increased, ten euros – up to 70 euros – of money per child, the minimum wage will be increased from 607 to 642 euros (before taxes).
The new government has increased its budget to manage the coronavirus pandemic. Additional funds are provided for disability benefits, allowances, and soft loans.
The state budget revenue in 2021, including the European Union and other international financial aid, will be 11,252 million. and costs will exceed revenues by 4,573 million euros. euros.
The budget is based on GDP growth of 2.8% next year and wage growth will slow to 4.1%.
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