What would the coalition of Karbauskis, Paluck and Uspaskich do in power: Pension 13 would be just the beginning?

After the first round of the Seimas elections, the Homeland Union coalition – the Lithuanian Christian Democrats, the Freedom Party and the Liberal Movement of the Republic of Lithuania – seems more likely. In total, these parties have already won 38 seats, and in another 19 electoral districts in the second round, voters will vote for one of their candidates. Thus, up to 71 members of the Seimas, the so-called right lacks 14 seats.

Today, a coalition of all the other parties appears to be twice as likely. The Lithuanian Green and Peasants Union, the Labor Party, the Lithuanian Social Democratic Party and the Polish Lithuanian Election Campaign – the Union of Christian Families won a total of 35 seats in the first round and in six other electoral districts (including the Labor Party Lithuanian Social Democrat). So in order to have a majority in the Seimas, these parties must win at least 30 seats in the second round.

Delfi has reviewed the electoral programs of these parties.

The divergence is still great

LVŽS highlighted the work carried out over 4 years during the electoral campaign. These include the fact that the monthly minimum wage in Lithuania has been increased to EUR 437 “in hand”, and the average wage has increased to EUR 857 “in hand”. It is also notable that the country’s gross domestic product has been growing steadily.

Other achievements of the farmers are listed in the program: the introduction and gradual increase of the monetary benefit per child, the accession to the International Organization for Economic Cooperation and Development, the 11th place in the Doing Business ranking.

Despite these inspiring works, some of the problems facing the state are out of date, requiring more attention from the central government than a single Seimas term. For example, social exclusion is still quite high.

Changes and a long-term vision are needed in education, science and health. We believe that all changes must be carried out in accordance with a clear vision of the state’s development, in accordance with the principles of transparency and responsibility, and the work started must be finished ”, reads the LVŽS program.

In the field of social policy, the goal is to create a mechanism to index children’s money and introduce a pension number 13.

As you know, next year the children’s benefit should increase by 10 euros, up to 70 euros per month.

The so-called 13th pension, which would be paid once a year in December, has not yet been agreed, but managers would like it to reach € 200. It would cost the state budget about 180 million. euros.

In the economic field, the peasants emphasize the establishment of a state bank. The Ministry of Economy and Innovation has already requested this project from the European Commission.

Another LVŽS proposal: “Income tax benefits, identical to those applied in free economic zones, at least 1 million. EUR for investment projects in rural areas up to 1 thousand. population and creating at least 20 jobs. “

Will create jobs

The part of the Labor Party program that deals with salary and pension amounts oozes demagoguery.

“We have a concrete plan of action, we know how to do it and fulfill the commitments accepted with the Lithuanian people: the average salary – 1289 euros” in hand “, the minimum wage – 750 euros” in hand “, the average pension – 770 euros “announces his program.

However, no details are provided on how the match will achieve a 50-80% increase in these sizes.

The program also announces that 120 thousand jobs will be created in Lithuania. New well-paying jobs with a salary of 2,000. euros. It is true that it is not specified whether this amount is “on paper” or “in hands”.

“We will pay special attention to the regions, creating exceptional conditions for business development there, thus ensuring a better (lower) return on investment. We will establish a renovation fund so that apartment owners do not have to use their own funds or borrow. to banks, which will accelerate the renovation program and create new jobs in the construction sector, ”the program reads.

According to the Labor Party representatives, the biggest economic challenges in Lithuania are slowing economic growth, high long-term unemployment, long shadow, and labor shortages.

It is argued that taxes on labor and capital must be balanced for the sake of social justice.

“We will focus not only on the collection of taxes and revenue, but also on the efficient allocation of funds and strict control over their use,” declare the “employees.”

Fairer taxes

Social Democrats also talk about changes in taxes on labor and capital.

“Labor and capital income should be treated and taxed equally. Tax incentives for companies that generate millions of profits in Lithuania but invest little in the country should be abolished and taxes on capital revised.

The corporate tax rate should be harmonized by abolishing 15%. rate for non-bank companies and amortization of 20% prior to the crisis. the level of corporate income tax, which is also valid in Latvia and Estonia ”, reads its program.

The LSDP also wants the country’s budget revenue to increase to 35% by 2024. GDP.

A greater progressivity in personal income tax would also be sought. “We will reduce income taxes for people with lower incomes and increase taxes for people with high incomes,” say the Social Democrats.

They promise to link household income rates to the size of the population’s income, regardless of the source of income. “Those who receive the same income must also pay the same,” explains the program.

Finally, according to the Social Democrats, as in the absolute majority of European countries, food products in Lithuania should benefit from a preferential 9%. value added tax rate.

What the right-wing coalition would do with public debt and taxes, read here.