The Lithuanian Ministry of Finance has submitted the country's draft budget to the European Commission (EC) and the Eurogroup. Such obligation arose for Lithuania when it became a member of the eurozone in January 2015.
© Fotolia nuotr.

The draft budget states that in 2016, the general government deficit will constitute no more than 0.9 percent of Lithuania's GDP, this is an improvement of 0.3 percent compared to what was approved for 2015 in the Law on the Approval of Financial Indicators of the State Budget and Municipal Budgets as well as the Stability Programme.

"Better than projected general government balance was influenced by continued and new effectively implemented tax administration measures, including the ones directed at better VAT administration. Surplus local government balance will also have a positive impact. Whereas 2015 budget was expected to go into deficit when it was being drafted," said Finance Minister Rimantas Šadžius.

In 2016 the general government deficit is projected to account for 1 percent of GDP, after deducting expenditure on the systemic pension reform stage in 2016 which amounts to 0.1 percent of GDP.

The submitted project includes medium-term economic development prospects, changes of the tax system and expenditure policy in 2015-2016, projected government debt and other indicators.

The EC should return the evaluation of Lithuania's budget in two weeks.

It is forbidden to copy the text of this publication without a written permission from ELTA.

Data watchdog launches probe into journalist Cerniauskas' actions

Lithuania's State Data Protection Inspectorate said on Wednesday it had launched an investigation...

Economist: recession might probably happen in 10 years

A financial crisis in Europe might happen in ten years at the earliest, the Swedish financial...

Executives of two dairies slapped with fines for market abuses

The board of the Bank of Lithuania has imposed a fine of 200,000 euros on Linas Strelis, a member of...

Telecoms operators watching situation regarding Huawei

Following Google 's announcement that it has severed relations with Huawei , seen by Washington as a...

Swedbank's pension funds invest EUR 200 mln into sustainable business

Pension funds managed by the Swedbank financial group are investing 200 million euros, or a sixth...