aA
Lithuania's general government deficit is estimated at 5 percent GDP next year, the country's Finance Ministry announced on Wednesday, having presented next year's budget bill.
Government's deficit estimated at 5 pct GDP next year
© Imago / Scanpix

Finance Minister Vilius Sapoka told the Cabinet that 5 percent is "a limit that allows keeping debt growth under control and avoiding the growth of unsustainable debt service costs in the future".

The country's debt is projected at 50.2 percent of GDP in 2021, according to the bill.

The deficit is forecast to narrow to 2.7 percent of GDP in 2022 and to 1.6 percent in 2023.

Sapoka said the proposed medium-term plan should "ensure a rather low cost of loan financing".

"I believe the current version is optimal, even compared to other countries," the minister said.

"That allows us to return, in the medium term, to the implementation of the Maastricht criteria in terms of debt, inflation and budget deficit," he added.

This year, the general government deficit – the difference between expenditure and revenue – may reach 8.8 percent of GDP. The hole in the budget was caused by additional government spending to mitigate the negative effects of the coronavirus crisis and by a drop in revenue due to the economic contraction.

Despite an increase in public spending due to the coronavirus crisis, this year's budget has not been revised.

Sapoka told the Cabinet that next year's budget will be similar to what it actually is this year.

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

Landsbergis: Ukraine's cut-off from Russian networks would resolve sanction issue

The ongoing negotiations on a new sanction package for Russia are stalling due to Hungary's opposition...

Interior Ministry representative: illegal migration route via Moscow emerges

One should not be misled into thinking that the recent drop in the number of illegal migrants trying...

Police chief: crime levels up by fifth Ukrainians among victims

The crime level in Lithuania has risen by a fifth in the first quarter of this year, compared to the...

War in Ukraine: parliament lets gun owners buy night vision sights

In response to Russia's ongoing war in Ukraine, the Lithuanian parliament adopted amendments this week...

Nauseda: Vilnius backs Sweden's NATO membership

Lithuanian President Gitanas Nauseda told Swedish Prime Minister Magdalena Andersson by phone on...

Top news

Landsbergis: Ukraine's cut-off from Russian networks would resolve sanction issue

The ongoing negotiations on a new sanction package for Russia are stalling due to Hungary's opposition...

Interior Ministry representative: illegal migration route via Moscow emerges

One should not be misled into thinking that the recent drop in the number of illegal migrants trying...

Culture council: Russian culture cannot be funded during war

The Lithuanian Council for Culture says it is still receiving requests to allow Russian artists and...

War in Ukraine: parliament lets gun owners buy night vision sights

In response to Russia's ongoing war in Ukraine, the Lithuanian parliament adopted amendments this week...

Police chief: crime levels up by fifth Ukrainians among victims

The crime level in Lithuania has risen by a fifth in the first quarter of this year, compared to the...