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The general government deficit will be 10.9 percent this year. GDP, and next year – 4 percent. GDP The budget deficit will be the highest in at least 15 years and higher than during the last financial crisis in 2009, projects the National Audit Office.
General government debt has likely remained relatively stable until the economic downturn caused by COVID-19. will reach 50 percent. GDP level and will approach 60%. Debt criterion of the GDP Maastricht, evaluated by the Fiscal Authority.
The State Audit Office indicates that it is necessary to follow a specific and growth-friendly fiscal policy when the economic recession is expected. But we will have to think about how to reduce debt in the future.
“In the event of a significant increase in public debt, it is necessary to plan the direction of its reduction in the future. We want to emphasize that, in exceptional circumstances, the obligation to manage public finances in a transparent, prudent and long-term manner remains. Therefore, even now, it is important to direct the expenses of the government sector to those areas that will bring the greatest benefits for the economic development of the country both in the coming months and in the long term, ”says Agnė Kazlauskaitė, Chief Specialist of the Department of Budgetary Policy Monitoring.
The report also includes a comparative analysis of the Baltic economic stimulus plans, showing that debt growth rates are similar in terms of GDP decline and the general government deficit: debt growth is increasing by more than 10% P. GDP, the general government deficit amounts to about 10 percent. GDP The economic stimulus plans represent around 5-7%. GDP of the countries.
Reservations are lower than planned
Although in 2019. The Lithuanian economy grew faster than expected, the amount of funds accumulated in the fiscal reserves was 8.6 percent. lower than expected and amounted to 2%. GDP, writes the State Audit Office.
The surplus government rule was also not followed, and not all general government budgets were implemented in accordance with fiscal discipline rules. General government debt in 2019 at the end of the year represented 36.3 percent. GDP
Stability of Lithuania 2020 The evaluation of the program in 2020 was carried out on the basis of the second scenario of economic development presented by the Ministry of Finance, which assumes that the gross domestic product in 2020 will be reduced by 7.3 percent.
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