The Seimas of Lithuania on Tuesday adopted the 2021 budget with 77 votes in favor, 2 votes against and 49 abstentions.
Parliament adopts 2021 budget
© DELFI / Andrius Ufartas

The budget law provides for a general government deficit of 7 percent of gross domestic product (GDP), which will mostly result from additional expenditure on measures to contain the coronavirus pandemic.

Prime Minister Ingrida Simonyte does not rule out that the government may next year have to submit a revised budget if it needs extra funds to cope with the crisis.

The budget law in its current version provides for 934 million euros in spending for measures to contain the pandemic and its consequences.

The general government debt is expected to increase to 51.9 percent of GDP next year, from 47.5 percent this year.

Finance Minister Gintare Skaiste said that measures to manage the growing debt would be reflected in the budget of 2022.

The next year budget's revenue is estimated at 11.25 billion euros, appropriations – at 15.83 billion euros, and deficit – at 4.57 billion euros. The net borrowing limit has been set at 4.03 billion euros.

Old-age pensions will increase by 9 percent on average next year. Child benefit payments will go up by 10 euros to 70 euros per child per month and the gross minimum wage will grow to 642 euros, from 607 euros.

The budget was prepared on the assumptions that the country’s GDP would increase by 2.8 percent next year and wage growth would decelerate to 4.1 percent.

It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Lithuanian airports’ aviation traffic results for 2021: the period of rapid recovery

In 2021, Lithuanian airports handled almost 2.5 million passengers, 37% more than in 2020, when they...

Lithuanian startup launches predictive eye-tracking analytics for ad posters

Attention Insight, a pre-launch design analytics company offering AI-powered website and advertising...

Seimas reject ruling block's bid to liberalize alcohol sale

The Seimas of Lithuania on Tuesday voted down the ruling block's initiatives aimed at liberalizing the...

Bagdonavicius to lead birkle IT Lithuania and Latvia

To meet the goal of business expansion in the Baltics, birkle IT is proud to announce that Dr....

Prototype electric passenger bus is being tested at Vilnius Airport

The prototype electric bus Dancer developed and manufactured in Lithuania is being tested for...

Top news

President urges to "fix" Taiwanese office name

Lithuanian President Gitanas Nauseda has called on the country's government to "fix" the name of the...

Simonyte: we need to be ready for everything, only Putin can answer on war

Lithuania needs to get ready for all possible scenarios over Russia's military buildup near Ukraine...

10 630 new COVID-19 cases

On Wednesday, 10 630 new COVID-19 cases were detected in Lithuania. Since the beginning of the...

Foreign Minister welcomes EC's decision to turn to WTO

Lithuanian Foreign Minister Gabrielius Landsbergis has welcomed the European Commission's decision to...

Hollywood star Clint Eastwood continues legal battle against Lithuanian firm (1)

Hollywood star Clint Eastwood continues his legal battle against Mediatonas, a now-liquidated...