Finance Minister: budget deficit may be smaller than planned this year

Lithuania’s general government deficit this year will be somewhat smaller than the planned rate of 6.5 percent of gross domestic product (GDP), Finance Minister Gintare Skaiste has said, adding that next year, the deficit may exceed the projected rate of 3.5 percent due to the migration crisis and the ongoing pandemic, the Verslo Zinios business daily reported on Thursday.

“Following the revision of the 2021 budget in the middle of the year, the deficit was projected to reach approximately 6.5 percent of GDP [this year]. However, it is likely to be somewhat smaller,” she said in an interview to the business daily.

According to the minister, the preliminary goal for 2022 was a budget deficit of 3.5 percent of GDP but it might actually be as high as approximately 4.2 percent.

“However, we must keep in mind the ongoing pandemic and the emergency situation at the border due to the influx of migrants. According to our forecasts, the expenditure related to [these] emergencies should go beyond that deficit of 3.5 percent. Therefore it now looks likely that the final rate will be approximately 4.2 percent,” Skaiste said.

She added that the general government debt should reach approximately 49 percent of GDP at the end of the year.