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Mr. Nausėda emphasized that the additional costs foreseen in the budget would help the health system, the population and companies to face the challenges of the pandemic, but that it would be necessary to reduce the deficit in the future.
“Four years before the pandemic, Lithuania had a public finance surplus. Strong pre-crisis positions now allow it to help the country’s health system, the population and the country’s businesses cope with the challenges of a pandemic. But 7 percent next year. The budget deficit at the level of GDP must be a short-term phenomenon, temporary aid measures cannot be converted into permanent expenses, “the president said in a press release.
The presidential report states that the total aid package for the coronavirus pandemic is more than one billion euros. euros. The funds will be used for grants to companies during downtime, freelancers, job seekers, sickness benefits (disability), financial aid to companies, medical and medical equipment, medical salaries and institutions involved in the fight against the pandemic.
The president also pointed out that the budget will allow to increase pensions: the average old-age pension for the elderly will increase from 377 to 415 euros next year.
“The well-being of a society can be judged by the situation of its elderly people. Next year, pensions will increase by one tenth and the poverty rate in the elderly group is expected to decrease by almost one fifth. Maintaining this rhythm and the appropriate priorities, in a few years we can expect a great advance to guarantee the dignified old age of the citizens of the country ”, said the President.
G. Nausėda called the boy’s money, which will increase next year, a positive change.
He noted that the 2021 budget predicts that municipal budget revenue, along with state budget grants, will grow by nearly 11 percent. Additionally, municipalities will be able to borrow up to $ 58 million if necessary. euros.
However, according to the president, opportunities for municipalities to invest and create smarter smart regions will continue to face challenges, requiring a greater search for solutions for increased investment in the country’s regions.
“The EU Recovery and Resilience Fund will play an important role, offering a unique opportunity to lift the whole country to a higher level of quality. At the same time, however, it means that the responsible investment process must prepare in the shortest possible time ”, reads the report of the Presidency.
Nausėda said she welcomed the fact that the budget for the pandemic maintained a strong focus on national security. Defense spending is projected to reach at least 2.03 percent. GDP with the possibility of increasing up to 2.05%. GDP.
“In order to achieve high-quality public services for the citizens of the country, as well as progress in education and science, one of the key strategic goals of the Lithuanian Welfare vision named by the president remains to increase: increase the volume of public resources 35%. GDP level. This requires, in the first place, a more effective use of the instruments to reduce the shadow economy and fight for greater equity in the country’s tax system, “the presidency’s press release reads.
The Seimas adopted the state budget for 2021 a week ago. The deficit of the public administrations, the difference between expenses and income, will be 7% next year. Gross domestic product, mainly due to the additional costs of managing the coronavirus pandemic.
Prime Minister Ingrida Šimonytė affirms that the tight budget project more transparently reflects the real situation, the increase in the budget hole is short-lived and inevitable. The opposition says the deficit is rising unreasonably, rapid debt growth could make long-term government loans more expensive and plans to revise the stimulus plan could hamper access to the EU investment fund.
During the approval of the budget, the decision of the parliamentarians to increase the budget of the Seimas Chancellery by one and a half million euros was met with contradictory evaluations.
Budget for 2021: how much the “retirees” will retire, professor, president
The Seimas adopted the budget for 2021. A team of BNS journalists assessed how the country’s new treasury will change the incomes of different people.
Retired
Due to the indexation of pensions, old-age pensions will increase by 9.58 percent. Advance pensions, disability, widowhood and orphan pensions will also be increased.
It is estimated that the average old-age pension with the required time of service will reach 440 euros in 2021, and the average pension 413 euros, 40 and 36 euros more, respectively, than this year. The maximum amount of the pension supplement paid to the smallest pension beneficiaries will increase by 3 euros to 260 euros next year.
The governors also promise to start paying 28 euros for individual pensions from July next year. It would be available to all single people, whether they are widows, divorced or have never started a family. As of yet, no benefit decisions have been made and no funds have been provided for payment.
There are about 615 thousand people in Lithuania. retired, about 5 thousand. beneficiaries of early old age pensions, about 160 thousand. beneficiaries of disability pensions, around 30 thousand. beneficiaries of orphan’s pensions.
Educators
The increase in teacher salaries in September will not increase from January. Salaries for the lowest-earning educators, concert performers and paint escorts will increase on average 13 percent starting in January. Starting September 1, salaries for education support specialists will grow by an average of about 4 percent. The salaries of librarians in educational institutions will also increase.
Starting in January, the abolition of the so-called “scissors” of salary coefficients, based on current coefficients, will increase the salaries of some school principals and deputies for education, as well as the salaries of department heads.
Starting in January, the salaries of early stage researchers will be equal to the support of 2-4 year old PhD students and will be increased by an average of 234 “practical” euros – the average salary of these researchers will be 880 euros .
Employees
The salaries of civil servants will increase slightly next year as the base salary rises from 176 to 177 euros.
This will increase the average salary of civil servants, according to the position group, from 6 euros for specialists to 16 euros for heads of institutions.
According to data from the Ministry of the Interior, in 2019 the average salary of civil servants “in the hands” amounted to 1,052 euros, in 2020 for 11 months – 1,165 euros.
Next year, it will average € 1,172 if employees receive the same benefits and bonuses they received this year.
Statutory officials
Next year, the salaries of officers in the Department of Fire Protection and Rescue should increase to the maximum. For firefighters of all levels, the salary should increase by an average of € 109 to € 1,018 “in hand”.
The State Border Guard and police officers should also earn more. The salaries of border guards at all levels should increase by 53 euros to 1018 euros “hands”, the salaries of police officers at all levels should increase by 46 euros to 1107 euros “hands”.
Taking into account the increase in base salary from 176 to 177 euros, the salaries of the agents of the Public Security Service (VST) and the Financial Crime Investigation Service (FNTT) should also increase slightly. The salaries of FNTT officials should rise on average from € 13 to € 1,420 “practical”, and VST to € 1,012 “practical”.
Head of state
President Gitan Nauseda’s salary before taxes next year will be 9,680 euros, and the head of the country will receive 5,623 euros.
The salary of the president of the Seimas Viktorija Čmilytė-Nielsen will reach 2,784 euros, and the salary of Prime Minister Ingrida Šimonytė – 3,021.91 euros “in the hands”.
Parents
Starting in January, the universal child benefit will increase from € 60 to € 70, and for children with disabilities from large and low-income families from the current € 100 to € 111.
Universal family benefits have been paid since 2018 and initially amounted to € 30. Similarly, both working parents had previously recovered through the personal income tax credit, which was abolished.
Proponents of the benefit emphasize that it has helped reduce child poverty, and critics say affluent families who do not need support also receive “money for children.”
The new center-right government promises to continue paying universal child money, but recognizes that it will no longer grow rapidly. Managers also intend to view additional support for families as a tax break.
Entrepreneurs
Businesses face the risks of a pandemic in the new year. Companies in the hospitality and restaurant sector are the most prone to bankruptcy, with risks in the fields of transport and the arts. The budget provides additional funds for disability benefits, subsidies, soft loans, but companies also expect specific subsidies.
The monthly minimum wage in Lithuania in 2021 should reach 642 euros and be 35 euros higher than this year. The Lithuanian Business Confederation has called for the minimum wage not to be increased for the time being, as this could place an undue burden on small businesses in the regions.
Sodra contributions will not be paid next year for earnings in excess of 60 Median Salaries (VMU) per year (this year – 84 VMU). No other major tax changes are anticipated.
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