Updated budgets are presented to the Seimas: changes await employees, employers, retirees

The draft budget prepared by the Ministry of Finance foresees an increase in revenue of 5.1%. (572.25 million euros) to 11.82 billion euros. and 4.6% of the expense. (731.69 million euros) to 16.57 billion euros. euros.

The total public sector deficit is projected to reach 8.4 percent this year. that is, more than was budgeted in December.

Due to the increased costs of fighting the pandemic of the 5.3 billion expected. up to 5.7 billion The public debt limit for this year is increased in EUR. The debt is expected to reach 52.3 percent by the end of this year. gross domestic product, and in 2023 and 2024 it will stabilize at 58.1%. GDP.

At the meeting, Finance Minister Gintarė Skaistė recalled that the 2021 budget prepared by the former Government of Saulius Skvernelis provided for 4.5 billion. Net debt limit at the time of delivery: 3.8 billion. euros.

“The preliminary draft budget prepared by the previous government projected a GDP growth of 3.3 percent, compared to the current forecast of 2.6 percent. I mean that the previous government with better forecasts also predicted a debt limit. Higher net At a time when we have worse forecasts, the debt limit is lower.

To all those who say that the debt limit and debt growth is indecent, I could say that what they planned was simply outrageous, “he said.

Opposition leader S. Skvernel made a statement about the indecent increase in public debt on Tuesday.

G. Skaistė also said that current vaccination rates and plans allow us to hope that we will return to normal life this year.

As we presented in December, the funds for the management of the pandemic are planned for half a year, if the pandemic lasts, we will have to return with a budgetary improvement, and funds will have to be invested this year from the European Commission.

In essence, this budget change is about managing the consequences of a pandemic, ending the pandemic period and financing the post-pandemic period, when additional measures are being developed that should ensure a smooth return to normal life ”, He said.

The updated budget provides more money for vaccinations and other health care costs, social security (social maternity and unemployment insurance), employment measures (downtime benefits, job search benefits, self-employment benefits, sickness benefits) , etc.

The project also includes the loss of income from a temporary VAT rebate for the restaurant, culture and sports sectors and a unique opportunity for the business that suffered a loss in 2020 to “write off” it with declared income tax. for 2019. However, it does not include President Gitan Nausėda’s proposal to increase tax-free income to 450 EUR (now 400 EUR).

Due to overheating

G. Skaistė responded to the question of the chairman of the Seimas Budget and Finance Committee Mykolas Majauskas whether the anticipated higher expenditures could further heat the economy and cause inflation.

“The inflation projected by the Ministry of Finance is 1.8 percent. In view of certain risks that there may be growth. In any case, however, the inflation rate should not be very significant. In the coming years, it will not it should exceed 2%, a level that is still considered sustainable.

As far as budget deficits are concerned, it is significant, managing the pandemic comes at a price, but even though many think that all of these funds are related to managing the pandemic, I will simply recall the original 2021 budget prepared by the previous government, which did not. not providing funds for pandemic management, but even then the deficit was 5%. T. and. without additional funds to manage the pandemic, “he said.

The Minister explained that a large part of the deficit is long-term liabilities that are not based on long-term sources of financing. “Because of this, we will definitely have to take certain measures related to the tax changes in the fall,” said G. Skaist.

In response to a question from Lukas Savickas, a member of the Lithuanian Farmers and Greens Union faction, about European Union funds under the Recovery and Resilience Mechanism (FRR), the Minister stated that the Government does not he had no desire or competence in this area.

“Those measures and those reforms that are coordinated with the EC are coordinated in the first place with the program of this Government, with the social partners. In any case, the EC funds will not reach us earlier than in the autumn. Due to the need for all countries to ratify their own resources laws and decide on the approval of national plans. The final formal decision on what will be financed will be in a few months.

It is not entirely responsible to write your wish list and put it in the draft budget in the hope that it will be funded by the EC without coordination. Naturally, most of the measures that your government has listed as eligible for funding would have fallen into the public debt account for the most part. Simply because there was no harmonization, ”he said.

Veryga summoned Dulkis to the Seimas.

The budget of the Compulsory Health Insurance Fund presented to the Seimas provides for 1.9 percent. (€ 48.5 million) higher revenues and 0.5% (€ 11.33 million) higher costs. Consequently, the PSDF’s budgetary revenue in 2021 is expected to reach 2.53 billion and expenditures 2.49 billion. euros.

More funds are provided in the PSDF budget to supplement salary supplements and reserve for physicians fighting pandemics.

The PSDF budget project was to be presented by Vice Minister of Health Živilė Simonaitytė, but faction member LVŽS Aurelijus Veryga asked Minister Arūnas Dulkys to do so. Therefore, a hiatus was announced until the next meeting.

We do not see a minister in the Chamber, with all due respect to the Vice Minister, I have no doubt about her competence, but the presentation of the budget is a truly exceptional event and is usually done by ministers, answering questions that are very politically difficult. next time. We meet in the faction, I know the opinion of the Labor Party faction is similar, please take a break from this presentation, wait until the Minister can present this project, ”said A. Veryga.

Jurgis Razma, who chaired the meeting, announced that the break was announced by consensus. “Because it is clear that the opposition group will definitely get a fifth of the votes,” he said.

It is proposed to increase Sodra’s budget revenue by 1.17 percent. (60.2 million euros), up to 5,190 million euros. and costs – 1.24%. (61.85 million euros), up to 5050 million euros. euros.

Sodra’s budget includes more funding for a new benefit for single and disabled seniors, downtime subsidies, downtime subsidies, self-employed benefits, COVID-19 occupational physician sickness benefits, more favorable benefit calculation for maternity, paternity and childcare if personal income has decreased due to poverty.

Allowances During and After Downtime

The Ministry of Social Security and Labor has indicated that as the quarantine continues, employers can declare employees downtime if they are unable to provide employment. During downtime, employees may not be required to perform job functions and be paid at least the minimum wage, but only if the employment contract stipulates a full-time work rate. Wage subsidies are proposed during quarantine or emergency situations, but no later than September 30.

After the entry into force of the law, the amount of the wage subsidy in the first month would be 100%, but not more than 1 monthly minimum wage, that is, 642 euros “on paper”, in the second month – 90% . MMA, in the third month – 70 percent. Since the beginning of this year, all (100%) wages accrued and paid to the employee during the quarantine period are reimbursed to employees in downtime during the quarantine. The maximum refundable amount is 1.5 MMA, that is, € 963 “on paper”. This amount of support will be paid until June 30.

Employers are offered to pay wage subsidies for employees returning from downtime. Such subsidy would be paid for each employee who has been declared downtime for at least 75 working days (at least 600 working hours) in 6 calendar months, and the employer received a salary subsidy during downtime to keep his job . The employee also could not be fired. The allowance for returning workers would be paid for one month, but no later than July 31. The amount of the salary subsidy would be 100%, but not more than 1 MMA.

In addition, a flat-rate benefit is proposed for the self-employed affected by a pandemic when their economic activity slowed and income fell 30% in 2020 compared to 2019 or even more. The 260 euro benefit for the self-employed would continue to be paid until September 30, after which it would cease to be paid.

Parents, Doctors and Singles

According to the Ministry of Social Affairs, for parents who have been declared inactivity time during the pandemic and the period of inactivity or part of it is within the period of calculation of benefits, the benefits will be calculated from the period before the announcement from quarantine. For the self-employed, the amounts of the maternity, paternity and childcare benefits will be calculated based on the income received from February 1, 2019 to January 31, 2020, from which the Sodra quotes. People who have already been granted maternity, paternity and childcare benefits must request their recalculation from the territorial branch of Sodra no later than January 1, 2022.

Once the changes take effect, 100 percent. Sickness benefit in the amount of ‘hand to hand’ would be paid to sick COVID-19 workers working in the fields of health, public safety, public order or education when contact with sick people is unavoidable or necessary.

The Seimas also proposes to pay an additional benefit of 28.63 euros from July to the poorest lonely and disabled elderly people.

The budget amendments should be approved by the Seimas in June. Before that, they will be discussed in the Seimas committees.