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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.

BNS
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