In the deficit budget – one billion for the management of the pandemic: the opposition warns of the need for new taxes

Of the amount allocated to the management of the pandemic, 480 million It is planned to allocate 1 billion euros to the Ministry of Social Security and Labor, which would use it for sickness benefits (disability), subsidies during downtime, benefits for the self-employed and applicants of employment.

It is proposed to allocate 230 million to the Ministry of Economy and Innovation. subsidies, soft loans, partial compensation of interest and other commercial support to companies affected by Covid-19.

Finally, the Ministry of Health is expected to receive 145 million. for the purchase of Covid-19 vaccine, treatment and medical equipment, laboratory tests, etc. There are also another 76 million in the government reserve. for the different institutions involved in the fight against the negative effects of the coronavirus pandemic.

DNA plan removed

When evaluating the entirety of the improved bill and the improved budgets that make up the other government sector, government revenue in 2021 should be $ 682 million. EUR lower than AP.

The most important reason for the decrease is that there are not 744 million expected. Income, including expenditures, of the Economic Recovery and Resilience Mechanism. It is planned to finance the projects of the plan called “DNA of the Future Economy”, but by decision of the Cabinet of Ministers they have been eliminated from the budget so far.

It is planned to be reviewed for the summer of 2021, when the new ministers will have perfected the DNA plan left by the previous government, and the European Commission will have secured funding for the projects.

Finance Minister Gintarė Skaistė, who presented the project at the Seimas session, said that the parliamentary mandate is required for the release of funds.

“This is the Constitution of Lithuania. It seems to me that we should first budget all the costs, because it is possible to plan them today, given the experience we have had. The RRF (Recovery and Resilience Facility) funds have been withdrawn because they do not exist. we compromise today and then the EC priorities change or are treated differently, the costs will go into debt and be financed with borrowed funds. Personally, I don’t see the point of that, we will just get a final agreement with the EC. I don’t see much of a problem in going back and improving the draft budget.

Regarding the financing of the coronavirus management during the last term, I personally do not think that the possibility of the government borrowing 3 billion euros and spending it by decree was a very transparent decision. To me, many of the costs there seem to have nothing to do with managing the coronavirus. The big question is whether the government was mandated to make those costs. It’s much more transparent putting everything in the budget, ”he said.

Seimas Vytautas Mitalas vice president said at the meeting that the revised draft is not perfect, but it is impossible to do better in such a short time.

“The budget provides funds to manage the situation in Covid-19. Not only for the vaccine, but also to cover testing, downtime and other unforeseen costs. I would like these funds to go to those who are at the forefront of the fight the virus effectively: hospitals, public sector workers and municipalities.

I’m glad that 230 million. The euro will reach small and medium-sized companies, which have suffered and are now suffering from the difficult situation in the country. It is good that the municipalities have almost 80 million additional. euros for freelance functions, which was not a lot of money in the budgetary context, but it was not foreseen in the previous draft either.

I also support the increase in pensions, which will make it possible to combat the main cause of poverty in Lithuania. It costs money, but it is key, much easier than other benefits or government gifts. I want the Ministry of Education to use the additional 13 million successfully. educational support, which is urgently needed, ”he said.

Algirdas Sysas, the eldest of the faction of the Lithuanian Social Democratic Party, said that in the context of the Covid-19 situation, conscience does not allow criticizing the budget prepared by the rulers.

“The group understands that we must first defeat Covid-19, we will have to give up all financial and human efforts so that fewer people die and fewer people get sick. For health centers to return to normal to treat not only Covid- 19 but all other diseases.Then it will be possible to exercise much tighter control over the government.

Certainly, this Government did not make promises as beautiful as the previous one. Some have failed so far. I still miss a more drastic change in the tax system: we are still the country with the least redistribution of GDP through the budget (around 30%). Western countries, when there is a crisis, first raise taxes on the richest people. I wish that at the same time next year I would like to thank the Minister for his courage and determination to change the tax system, ”he said.

L. Savickas, a member of the Lithuanian Peasants and Greens Union faction, said that when comparing the projects submitted by the old and new governments, he found only two differences.

“It has been decided to eliminate the EC Recovery Fund. This is close to one billion, which also removes the DNA of the Economy of the Future. There is a risk that it is a lost investment in the advancement of the economy Lithuanian It is worrying that there is only one representative of a business association in the review group, I hope there is no relocation attempt on the basis of an interest.

Another difference is the inflated deficit. With 7 percent. We code that the level of debt will grow on its own and continue to rise. What will we do next year, not next year? We can introduce new taxes. Is there consensus on this? Or we can reduce funding for key areas so that we can have a sustainable situation, ”he said.

The improved state budget project estimates its revenue at $ 11.25 billion. The appropriations will amount to EUR 15.83 billion. The budget deficit will reach 4,570 million euros. euros. The government’s debt limit is set at 4,030 million. euros.

Sodra’s improved budget project is expected to have $ 5.13 billion. 4.99 billion euros in revenue. 136.24 million euros. EUR surplus.

The budget of the Compulsory Medical Insurance Fund (PSDF) must remain balanced, with 2.48 billion. income and expenses.

Public debt is projected to be 47.5 percent in 2020. of GDP, in 2021 – 51.9 percent, in 2022 – 50.5 percent, in 2023 – 52.1 percent.

This year, the budget balance should reach -7.6 percent. GDP, -7% in 2021, -2.8% in 2022, -2% in 2023.

The Seimas plans to approve the budgets on December 22. They must then be signed by President Gitan Nauseda.