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The state budget project for 2021 foresees 5%. General government deficit of gross domestic product (GDP).
No new benefits or new taxes are planned for next year, but the obligations previously assumed remain: the child’s money, the average pension, the minimum wage will increase.
Valdo Kopūstas / 15-minute photo / Vilius Šapoka
Finance Minister Vilius Šapoka confirmed in the Seimas that Lithuania’s budget indicators will be one of the best in the European Union (EU).
“We will be among the countries where both the budget deficit and the debt level will be the lowest,” emphasized V. Šapoka.
Little substantiated praise
According to I.Šimonytė, the practice has developed in Lithuania that the budget gets some very stately names, but when it starts to “peel”, there is less reason for praise.
“There are budgeted commitments that have been made or that are automatic, let’s say, like the indexation of pensions or children’s money that have been increased for next year last year. There are a few other solutions to move forward, but they certainly aren’t big budget numbers. The big numbers are the deficit that we finally have, which is really impressive. In addition, the so-called DNA plan of the Government, which is as if it were called an investment, but for some reason there is a great urgency to make those decisions with long-term consequences as soon as possible ”, commented on Tuesday I. Šimonytė to journalists in the Seimas.
In his opinion, there is a bit of that financial adventure.
The former finance minister explained that the investments are expected to be financed by the European Union Recovery Fund.
However, it has not yet been approved, it has only been politically agreed. Most likely, the anticipated expenses in the draft budget now come from borrowed money.
“And if those investments did not comply, for example, with the European requirements for digitization or the green exchange rate, it would still be a burden for Lithuanian taxpayers. Therefore, these obligations must be reviewed very seriously and carefully,” he is convinced. I. Šimonytė.
When asked if she has to tighten her belt next year, she replied, “Let the liars explain their own lies.”
Former Prime Minister Andrius Kubilius, who headed the government in 2008-2012, hinted that belts may have to be tightened.
I.Šimonytė explained that there is a big difference between the current situation and the previous one in 2008-2009.
Now, according to her, there is no need to tighten our belts not because R. Karbauskis is very good, but because Lithuania is a member of the euro zone, our finances are backed by the European Central Bank and the euro.
Valdo Kopūstas / Photo by 15min / Ramūnas Karbauskis
“And even when the economy has a negative impact on our budget revenue, we can really finance that deficit by borrowing in good condition. But the question is different. This year, naturally, we have a large deficit, we do not collect revenue, we needed additional spending. , the deficit is naturally large. Whether it should have been that large in terms of the economic recession is another question here. But there are objective circumstances for that. Next year, the government anticipates economic growth and yet it anticipates a rather significant deficit. And when we look at what it comes from, it comes from commitments that can raise questions. And these are not commitments on pensions, money for children or the minimum wage, I want to emphasize that. They are commitments that are related to what the Government calls the DNA Plan. ” , emphasized I. Šimonytė.
Waiting for offers for $ 1-1.5 billion euros
Prime Minister Saulis Skvernelis believes that when the Seimas discusses next year’s draft state budget, we will have the same old gender.
Luke April / 15min photo / Saulius Skvernelis
“Now the budget will be presented, then there will be a two-week recess, consideration in the committees, additional proposals will be registered; we can plan somewhere, as always, around 1 or 1.5 billion euros. Then it will be returned the Government. The government will consider and return to the Seimas. And then the new Seimas and the new Government will make decisions, “explained the Prime Minister.
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