[ad_1]
Watch the Kaunas press conference here:
The president admitted he was hesitant to sign a pension benefits law, but decided to go “not negatively but positively” and signed Thursday.
“Yesterday, I signed a law establishing a one-time payment of 200 euros for our seniors and other low-income people,” said G. Nausėda at a press conference in Kaunas.
He assured that at the time the law was signed, positions had been agreed with the ruling coalition and some other parties in support of the president’s proposals. What will they be like?
Offers to share the child’s money.
The Head of State proposes that Seimas adopt a law that would pay a single benefit of 200 euros to children from low-income and large families, as well as children with disabilities, and a single benefit of 120 euros to all other children no later than July.
“This is practically the current child’s monthly money, multiplied by two,” said G. Nausėda at a press conference in Kaunas.
According to the president, the distribution of money for children will cost the state about 80 million. euros
“The fiscal impact will be several times less than the benefits for older people because there are many older people,” he explained.
Proposes to reduce GMP and increase NPD
The president will also present an amendment to the law proposing a temporary reduction, from July to the end of the year, of the standard personal income tax rate (PIT) of 20 percent. up to 15%, applying it to the income of all employees up to the level of 3 average wages (VMU) (up to 4,000 euros gross).
This measure, according to the president, will cost around 300 million. euros
G.Nausėda admitted that no compromise has been found with the authorities on this proposal, but the proposal will still be presented.
“I think there will be an opportunity for a diverse discussion at Seimas, where we will try to show that our arguments are really important,” explained the head of state.
According to the President, a temporary reduction of the GPM would temporarily introduce a progressive three-tier tax system in Lithuania.
To further increase the incomes of people with the lowest incomes, the head of state will also propose to advance the planned increase in the amount of tax-free income (NPD) and introduce a NPD higher than 50 euros already this year.
“We offer a combined approach to reduce GPM and increase NPD,” said Nausėda, saying that the discussion of what’s best is already ideological. According to him, the reduction of the GPM rate will reach more people, in greater quantities and will help the middle class.
The total value of these measures, estimated by the Presidency, would be around 500 million euros. euros
People will remember government actions for a long time
The head of state points out that the proposed economic stimulus plan was born after discussions with Nobel Laureate in Economics Robert Shiller, economic and financial experts, workers’ and business associations, representatives of political parties and the government. A temporary reduction in the PIT rate is proposed once it is ensured that local budgets will not suffer as a result, under current law they will receive compensation this year.
President Nausėda assured him that R. Schiller had told him that the public would long remember how the government behaved during this crisis.
According to the president, the proposed measures will stimulate the economy in 2020 and will not create long-term commitments in the country’s budget, so these changes will be fiscally sustainable and will not affect the financing of public services in the following years.
He hesitated but signed
G.Nausėda has admitted that he had doubts about whether to sign a law establishing lump sum payments for all pensioners in the country. According to him, there are more groups in Lithuania that need support.
“If we resist the idea that help is not needed for any particular group that will play an important role in the elections, but for all the vulnerable groups that need to be addressed, then I would support such a principle and such a policy.”
Whether that is the case now is certainly debatable, because, for example, there are people raising children who are also in a difficult financial situation. There are people who have low incomes and that income can fall even more, even if they keep the job but the salary is cut, the person has less money. You should think like that, ”said the interview. 15 minutes the president said this week.
Although some economists have criticized the idea of lump sums, especially before the elections, the president assured that such measures would help boost domestic demand.
“The experience of many countries shows that especially in times of greatest recession, those helicopter money really helps increase domestic demand, and at a time when external markets are closed or open, domestic demand is almost becoming the main factor in balancing the economy, “said G. Nausėda.
[ad_2]
