What the government plans to do in the economy during this period: pensions for singles, a builder’s license and an easier start-up | Deal

Prime Minister Ingrida Šimonytė highlights three government priorities: the green course (related to the emergence of a climate-neutral economy, changes in agriculture, transportation), digitization, which aims to open up as much data as possible, and education.

The plan for the implementation of the provisions of the Government Program is scheduled to be discussed and approved at the Government meeting on March 10, the complete plan can be seen HERE.

THE 15 minutes reviews key jobs planned in the areas of finance, employment, pensions and economic stimulus, and when these changes are promised.

It will reduce poverty and increase employment

The government will aim for the proportion of the supplementary pension of single people of retirement age compared to the average old-age pension to reach 11% in 2024, and the risk-of-poverty rate to decrease from 20.6 to 17%. The employment rate of the population (aged 15-64) is also expected to increase from 71.6 to 73 percent.

To achieve these objectives in 2021. Q2 It is planned to legalize single-person pensions, as well as to comprehensively evaluate the system of social assistance benefits and the possibilities of increasing social assistance pensions more quickly without eliminating incentives to work.

It is still planned to review the legal regulation of pension indexation after considering sustainable sources of financing this quarter. I fourth Systematically review the legislation governing state pensions, annuities and compensatory allowances.

In order to reduce poverty and income inequality, while ensuring sufficient incentives to work, 2021 Fourth Quarter A study of the current minimum income system is planned.

2022 Fourth Quarter The government intends to assess the suitability of the state contribution floor to social security for groups of people with a high level of poverty and, if necessary, amend the State Social Security Law.

Given the target set by the Government, it is likely that maternity or sickness benefits will increase. 2022 Fourth quarter The objective is to approve a reform project to the Social Security Law for Sickness and Maternity in order to comprehensively review the benefits for sickness, maternity, paternity and childcare, as well as to bring the minimum amounts of these benefits closer together to the minimum consumption needs.

O 2021 In the fourth quarter, in order to extend the duration of unemployment benefit payments, reduce the duration of insurance requirements, include the remaining groups of self-employed workers in the unemployment social insurance system and to establish adequate rates of contribution to unemployment insurance, it is expected to approve the draft amendments to the Social Security Unemployment Law.

Flexibility in parental leave regulation is promised. 2021 Q2 The goal is to provide non-transferable parental leave, new opportunities for flexible work arrangements and opportunities for parents raising their children on parental leave to work and receive a childcare allowance during the period of parental leave, provided that the amount of benefits and pay does not exceed previous earnings.

Focus on building a high value-added economy

On the economic front, the Government is determined to increase Lithuania’s global innovation index from 40 to 35, and Lithuania’s labor productivity per hour worked according to the purchasing power standard compared to the EU average of 67 %. increase to 76%.

The government has set a target and that the share of high-tech production in Lithuania’s total production would increase by 4.6 percent. up to 7%

To achieve these objectives in 2021. In the first quarter, the Ministry of Economy and Innovation will seek to establish an Innovation Agency, consolidating the functions of promoting innovation activities.

Ministry of Justice 2022 Yo Cuarto intends to develop an incentive system that can provide a real incentive for developers of products and services to engage in the protection of intellectual property.

Investment attraction specialists have repeatedly mentioned that there is a lack of large plots for investors in Lithuania, so in the first quarter of this year, after assessing the need to establish new SEZs, the Government plans to prepare and approve the development. of territories to attract new investments and expand existing ones. plan.

It is desired to create new financial incentives and adapt existing ones to promote the development and creation of SEZs, industrial parks and industrial territories in the most promising Lithuanian economic centers. The objective is also to develop and approve a state land reserve model, which ensures the supply of large lands (territories) developed to attract new productive investments.

It will accept the builder card.

The Ministry of Energy has planned several works to increase the level of innovation in the energy sector. To that end, in 2021. I fourth It is planned to develop and implement an accelerator program for start-ups in the energy sector to ensure the business development of micro and small energy companies. Several EIMIN initiatives also focus on innovation.

SADM 2021 Q2 The self-employed who operate on construction sites will begin to be included in the scope of the occupational health and safety legal regulations, to establish the regulations for implementation and compliance with the requirements that apply to them.

By the way, in the first quarter of this year it promises to approve reforms to the Construction Law and to legalize the builder’s license, which up to now has raised many passions.

From 2021 Q2 EIMIN will also consider how to get businesses back to normal, with measures planned to keep workers in jobs to help them recover from the pandemic.

The idea of ​​reducing the administrative burden on companies is not abandoned, so in the first quarter of this year it is planned to develop a methodology to evaluate the consolidation decisions of the supervisory authorities of the companies. It is intended to provide a basis for institution building.

And to facilitate the creation of a company, 2022 I fourth It is planned to prepare and adopt an amendment to the Capital Companies Law in order to establish a lower limit of share capital.

This government had hinted that it would seek more state-owned companies to go public. 2021 Q2 It is planned to update the plan of measures for the restructuring and centralization of the management of public companies. It will provide for the transformation of state companies into legal entities, the privatization of shares of state companies dedicated solely to commercial activities and in competition with private equity companies, as well as the exclusion of state companies whose securities are offered for trading on a regulated market.

2021 I fourth In energy, the goal is to complete the construction of the gas pipeline connection between Poland and Lithuania (GIPL) and complete the project to increase the capacity of the gas pipeline connection between Latvia and Lithuania.

The rates will take effect no earlier than half a year.

In the area of ​​finance, 4 main objectives are established: strategic planning of general government finances focused on strategic goals, reduction of the shadow gap and VAT, review of fiscal benefits and special tax conditions, increase of financial independence of the municipalities.

In the third quarter of this year, it is planned to prepare and approve a bill that modifies the Tax Administration Law, which establishes that the modifications to the tax laws presented together with the budget project will enter into force only in exceptional cases before half-year. Years ago.

The government has already announced plans to review benefits for $ 800 million. euros. The government’s work plan foresees that in the third quarter it is expected to draft and approve legislation that establishes the exemption of ineffective and distorting indefinite benefits, as well as to prepare and approve legislation that establishes the exemption of special tax conditions that distort justice. tax.

In the third quarter of next year, it is planned to carry out an analysis of the family (household) as an income taxpayer’s institute and present proposals to the Government on a possible family tax model.

And in the third quarter of this year, the Government intends to make a decision on the possibility of extending the exemption from existing income tax to reinvested earnings, taking into account the assessment made by the Ministry of Finance.

2022 I fourth the objective is to carry out a systematic review of the state budget expenditures and use its results in the formation of the state budget for 2024-2026.

To increase the independence of municipalities, in 2021. Q2 It is planned to adopt a government decision on better collection of municipal revenues, diversification of sources, including the possibility of assigning more taxes to municipalities or a greater share of taxes already assigned.

Like all previous governments, this one will try to tear down the iron clogs to bring taxes out of the shadows.

2021 I fourth An action plan is planned to reduce the black economy and the VAT gap, which includes the promotion of formalization, prevention and awareness, better administration and effective control.

2021 I fourth The objective will also be to increase the potential of data analytics and optimize the profiling of high-risk entities, in particular to put in place the organizational and technical measures necessary to reduce the VAT gap.