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5 members voted in favor, 3 abstained and did not vote against.
I hope I don’t spend at once
Simon Krėpšta, Advisor to the Head of State, recalled three reasons why this proposal reached the Seimas.
“Its main objectives are threefold: to neutralize the impact on those groups of people whose incomes are most sensitive to economic fluctuations, and to promote domestic consumption. Consumer expectations are deteriorating, quite sharply. And the third is that this promotion it will have a direct financial impact immediately, “S. Krėpšta, adviser to the president, said at the committee meeting.
The benefit will be paid on time no later than July.
“Because now is the time for the economy,” said the president’s adviser.
The implementation of this proposal will require around € 72 million of borrowed funds.
Conservative Mykolas Majauskas said at the committee meeting that it was strange for him to promote consumption with borrowed funds.
“Unlike business support measures, this measure would quickly reach people, perhaps the economy.” Anyone and how? I personally have doubts when we try to encourage the consumption of borrowed funds, “said conservative M. Majauskas.
He reiterated that the budget review should take place well before the full aid package.
“This support is not exactly focused on those who have been affected. (…) And undifferentiated support, regardless of the amount of assets it has. Have you not considered differentiating this support and assigning it to those who need it most,” asked the politician.
Gypsies Nausėda
S. Krėpšta stated that the proposal of President G. Nausėda and his team is different.
“Our offer is different, we offer 200 and 120 euros. Quick and recovery is very important. It is possible to differentiate everything, but it takes time, it is not the path that works quickly. (…) Borrowed funds: there is no state in the world that currently stimulates the economy, not with borrowed funds, “replied the President’s adviser to the Seimas member.
Liberal Kęstutis Glaveckas told colleagues and S. Krėpštai on Monday that he was surprised that the proposal was only temporary.
“Once giving support to people, children and parents. We will ask the question, what will happen from 2021? Because the crisis has not yet started, only a partial loss of the budget. (…) It is a very slippery question politically here, I would not make such promises instead of the President, because Lithuania will be the same after the New Year. And such a decision can be inconvenient and very futile, “said K. Glaveck at the committee meeting.
The president’s adviser assured that next year’s challenges could be overcome with the help of a European rescue plan.
“We are looking at the forecasts, all of which show a significant contraction this year and a recovery in others. Next year we have a new European rescue plan, several billion euros a year will be allocated to Lithuania, the Lithuanian budget still you have not received that injection, we will have a unique opportunity, ”said S. Krėpšta.
The president’s adviser said that the lump sums should not be spent in a month, but in the amount divided by several months of use.
S. Krėpšta also assured that he could not differentiate the beneficiaries because he wanted a quick process and integration in the economy.
You will receive almost 400 thousand. families
The registered invoice specifies exactly how many families in the country will receive more money for children. The head of state proposed that Seimas adopt a law that would pay a one-time benefit of 200 euros to children from low-income and large families, as well as children with disabilities, and a one-time benefit of 120 euros to all other children for July.
According to the explanatory memorandum of the bill, a lump sum of 120 euros for all Lithuanian children would receive more than 507 thousand. children, about 330 thousand. families
And a single payment of 200 euros (with an additional 80 euros) would be received for approximately 134 thousand. children: children with disabilities and children growing up in low-income and large families, about 60 thousand. families
The document establishes that this lump sum will directly promote the consumption of families with children.
This benefit will also have a positive effect on the expectations of the population, which has deteriorated significantly as a result of the COVID-19 crisis.
Along with more money for children, Head of State G. Nausėda presented a proposal last Friday to reduce the standard personal income tax (PIT) rate from 20 to 15 percent by the end of the year, applying it to the income of all employees up to the 3 average salary level (VMU).
In order to further increase the incomes of people with the lowest incomes, the head of state also proposed to increase the tax-free income (NPD) earlier, as planned, and to introduce a higher NPD of 50 euros and to this year.
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