Look directly at the approval of the state budget for 2021: the opposition attributes an increase in the deficit, I. Šimonytė calls it black humor | Deal

Disputes over the state budget arose in the Seimas. Valius Ąžuolas, a representative of the opposition “peasants”, declared that the faction would not support the project.

According to him, there are two reasons for this: First, it is a mechanically increased state deficit, which worsens the state’s ability to borrow money cheaply.

The Skvernel government budgeted 5 percent, which is 2 percentage points less than the current government plan. It is true that his project did not have the cost of managing COVID-19, it was hidden in the planned possibility of borrowing from the government.

“It just came to my attention then. Consequently, the rulers do not trust the Government of I. Šimonytė if they do not want to give them the same opportunity to borrow,” V.Ąžuolas told reporters.

He also questioned whether the 1 billion euro bill planned by the new government would be enough to handle the fallout from COVID-19, as the outgoing government had spent almost three times as much on it this year.

According to V.Ąžuolas, the second reason why the “peasants” will not support the budget is the withdrawal of funds from the European Recovery Fund not yet approved for the implementation of the so-called DNA plan of the Future Economy.

“Estonia, Italy, Germany have included that money in their income and plan to spend that money from February 1,” said the politician.

After him, Finance Minister Gintarė Skaistė stood in front of the Seimas meeting room in front of the cameras of journalists, rejecting the accusations of the opposition representative.

According to her, listening to V.Ąžuolas implies foreign shame, because the previous government provided 5 percent. the deficit is meaningless, it would have increased.

“Obviously, if they planned to also manage fight like this year, the budget deficit would be 10% ”, said the Minister of Finance.

According to her, it is clear that the expenses of COVID-19 will be necessary, so they must be planned in the budget and implemented in a transparent way, unlike the previous government, which did not adjust the treasury.

“It seems to me that the planned costs today are optimal. (…) The expenditure is planned for half a year. Hopefully during that time fight he will manage, ”said G.Skaistė.

According to her, if the effects of the pandemic continue beyond the first half of 2021, the funds allocated for the management of the consequences of COVID-19 may increase at the end of spring, when the state budget will be revised to include the Fund for Recovery.

I.Šimonytė: this is already black humor

After hearing questions about the opposition’s criticism of the budget, Prime Minister I. Šimonytė laughed.

“Is it possible to laugh? I have a question, and how much money did the “peasants” provide for the management of the pandemic, said the prime minister in response to statements that one billion euros would not be enough to manage the pandemic.

“A sense of humor is a great thing, but sometimes it is no longer irony or sarcasm, but black humor, because I want to remind you that the draft budget presented by the previous government marked zero for handling the pandemic,” he added.

The prime minister agreed that there could be a deficit in the management of one billion of COVID-19, but stressed that the need for funds is planned for half a year.

“If the situation drags on or there is an additional need for funds, then, unlike the previous government, we will come to the Seimas with budget adjustments,” said I. Šimonytė.

He reiterated his criticism of the previous government’s intentions in the budget not to provide funds for the management of the pandemic, but to withhold the opportunity to borrow and thus plug the treasury holes.

In response to the observation that the government is increasing the projected public deficit by providing these funds, I. Šimonytė stated: “And if you hide the expenses in the debt limit and do not declare them, is this not an increase in the deficit? “.

“It seems to me that transparent and accountable budget management requires the Seimas to decide on the areas and institutions to which budget money is allocated, both collected as taxes and loaned on behalf of taxpayers,” the prime minister said.

“The Anna government thought it could address these issues on its own through meetings, ordinances or other low-level legislation,” the prime minister said.

Currently, when approving the budget, the Seimas is considering a proposal from many MPs for the state treasury.

The budget itself must be approved before 1:00 p.m.

Figures and facts

Last week, the revised budget of the new government included $ 1.24 billion. additional costs of 934 million euros, of which for the management of COVID-19.

Social security will receive the bulk of the virus funding, with the bulk of the pie going to downtime benefits and sickness and disability benefits, 180 million and 120 million respectively. euros.

By reducing the circle of benefits from self-employment and job search, a total of 100 million have been earmarked for these measures. euros.

The Ministry of Economy and Innovation has allocated 230 million. euros. Of these, 150 million. 30 million euros are earmarked for business grants. 17 million euros for loans on favorable terms. 33 million euros for interest compensation for small and medium-sized companies and 33 million euros for other aid. euros.

The health sector will receive 145 million. 65 million euros for vaccine and the remaining 80 million – Commitments with suppliers and laboratories.

In addition, 744 million euros were withdrawn from the draft budget. of income and expenses related to the EU Fund for Economic Recovery and Resilience, which has not yet been fully approved in Brussels.

These funds will finance part of the DNA Plan for the future economy, but only when the exact amount of allocations and the criteria for selecting projects are completely clear, the government says.

The remaining costs are about 300 million. EUR – planned for the implementation of previous legal obligations: additional indexation of pensions, additional funds for schools for national minorities, preschool education of children at social risk. More than 20 million. The budget for culture will increase in EUR.

The 2021 state treasury was still slightly revised on Monday when the government was considering proposals from members of the Seimas.

Initiatives were approved to provide funds to the Permanent Representative of the Seimas to the United States Congress (USA), to redistribute the appropriations to the Special Investigation Service, and the largest new line that appeared after Monday was 11, 7 million. to compensate for the development of digital education and learning losses caused by the coronavirus pandemic.

Previously, next year, the base salary of civil servants was expected to increase by one euro and pensions would increase by almost 9% on average. The child’s money will increase by ten euros, up to 70 euros per child.

The government predicts that the public administration deficit will reach 7% next year. Gross domestic product (GDP). State budget revenue next year will be nearly $ 4.6 billion. less than cost.