Final decision: 120 euros or 200 euros for families with children Business

A lump sum of € 200 will be paid for children from low-income and large families, as well as children with disabilities, and a lump sum of € 120 for all other children. This will require a total of 72 million. euros

The law links the right to a lump sum not only to its grant, but also to the right to it. This means that all children who will be eligible for this year will be able to receive the benefit, including those born in late 2020.

In the stage of adoption of the legal act, 101 Seimas members voted against, there were 3 parliamentarians and 4 politicians abstained.

The representatives of G.Nausėda, in presenting the proposal, stated that the situation and well-being of families raising children is particularly sensitive to income fluctuations, therefore this group of society needs help.

Simonas Krėpšta, the chief economic adviser to President Nausėda, told reporters after the vote that the main objective of these benefits is to stimulate consumption and improve the expectations of the population, and other countries are taking similar measures, such as Germany.

The president’s adviser also defended the decision to finance the support package with borrowed funds, saying that “there is probably no state in the world that is not currently stimulating the economy through loans and having a negative deficit.”

“These are specific measures, they will be used in the second half of the year, when the biggest economic recession is forecast, and they are intended to improve this recession and ensure that budget revenues recover as soon as possible,” Krepšta said, as quoted by BNS .

For and against

Rimantas Jonas Dagys, representative of the National Association, said easing the burden on families raising children is a future-oriented measure.

“If we think that the economy comes from somewhere, it must be remembered that that economy is created by living people,” said the MP at the meeting.

“Darbietis” Andrius Mazuronis regretted that the Seimas did not consider more systematic support for families raising children, but supported the project by claiming that this group of society faced the greatest challenges during the coronavirus pandemic.

“These are the people whose incomes have fallen the most in the current situation. These are people who have lost their jobs, and these are people whose expenses have increased due to the children’s distance education and related expenses,” said the member. from Seimas.

MEPs who opposed the proposal emphasized that the benefits would come from the borrowed money, and lamented the fact that the support was not directed at poor families but was distributed to everyone.

“With such a unique sprinkling, we will not stimulate the economy and we will probably spend treasury money, we will increase debt, and when it is necessary to solve systemic health, social security and education problems, when it is necessary to increase public sector wages, there will be no money “said conservative Mykolas Majauskas.

“This is not precise social support, because everyone will receive it, both those who lack it and those who are wealthy,” said Aušrinė Armonaitė, the leader of the Freedom Party.

Other proposals from the president

According to the data of the presidency, a lump sum of 120 euros will receive more than 507 thousand. children, or 330 thousand. families, 134 lump sum will receive 134 thousand. children, or 60 thousand. families

The President has also proposed a reduction in the Personal Income Tax (PIT) rate from 20 to 15 percent. and before increasing the Non Taxable Income (NPD) to € 50.

Governors promise to support the NPD proposal, but intend to avoid a reduction in the GPM rate, arguing that the initiative is not socially fair.