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The revenue and expenditure of Lithuania's 2020 state budget, including EU and other international support, should grow, and the planned budget deficit will be slightly lower than planned this year.
Government considers 2020 budget with revenue and expenditure going up
© DELFI montažas

The Lithuanian government is on Wednesday discussing the 2020 state budget bill drafted by the Ministry of Finance. Under the bill, the budget's revenue will grow 9 percent, or 955.686 million euros, to 11.545 billion euros, and expenditure will go up 8 percent, or 940.388 million euros, to 12.646 billion euros.

The state budget deficit will amount to 1.101 billion euros, up 1.4 percent, or 12.298 million euros, than planned this year (1.116 billion euros). The budget bill states that the general government surplus should be no less than 0.2 percent GDP next year, and a general government surplus will be sought in the medium term.

The state budget's revenue, excluding EU and other international support, should grow 10.3 percent, or 894.88 million euros, to 9.563 billion euros, and EU and other international support funds should grow 3,2 proc., or 60.806 million euros, to 1.982 billion euros.

The planned tax revenue should go up 11.2 percent, or 900.562 million euros to, 8.913 billion euros. The majority of this revenue will traditionally come from VAT and amount to 4.149 billion euros, up 8 percent, or 307.363 million euros, than this year.

The share of residential income tax transferred to the state budget should grow 13 percent, or 226.464 million euros, to 1.969 billion euros, and the state budget's expenses on the general social insurance pension part should increase 9.6 percent, or 164.615 million euros, to 1.887 billion euros, including 7.862 million euros to cover the liabilities for 2018.

Excise revenue should increase 8 percent, or 121,275 million euros, to 1.631 billion euros, and corporate tax revenue should grow 14.2 percent, or 104.584 million euros, to 843.582 million euros.

The 2020 budget bill was drafted taking into account the Finance Ministry's proposals on increasing alcohol, tobacco and fuel excises next year and also expand real estate taxation. Those measures, as well as changes to several existing tax credits, should bring around 90 million euros in revenue.

The Environment Ministry's proposed car pollution tax (29 million euros) is also included into planned revenue,

The bill also includes proposals to tax assets of credit companies and retail chains (52.2 million and 31.9 million euros respectively).

The state budget's other revenue should inch down 2.5 percent to 517.285 million euros.

The budget bill should be put before the Seimas no later than by Oct 17, and the document is usually returned to the government for further improvements after its initial consideration in the parliament. The budget is finally endorsed in December.

BNS
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