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“How to deal with this type of crisis situation, it is natural that it is necessary to activate the fiscal stimulus. As for the return to a more neutral fiscal position, a gradual approach is needed here so as not to cause an additional shock, but it must be taken into account that indebtedness has natural limits, so it is neither significant nor prudent to stimulate the economy to the same extent, ”Seimas Budget and Finance V. Šapoka said at the committee meeting.
He reiterated the need to guarantee debt sustainability.
“We need to ensure debt sustainability, which is why debt growth must change its trajectory. Consequently, next year’s budget must be secure, without additional surplus commitments,” said the minister.
However, the minister added that the overall level of Lithuania’s external debt is one of the lowest in the EU.
“In terms of Lithuania’s overall level of external debt, it is one of the lowest in the EU. In this place, on the other hand, such a level of debt does not cause any problems for the financial system,” said V. Šapoka.
According to the Bank of Lithuania, this year’s budget deficit will be one of the largest since the data was released, and the level of debt will increase by 10%. the points will approach 50%. GDP will be the highest in Lithuania’s history.
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