Lithuanian Finance Minister Rimantas Šadžius says that the government could finish the year with extra funds in the state coffers.
Rimantas Šadžius
© DELFI / Mindaugas Ažušilis

"If we manage to control the budget formation processes and not to make mistakes both on the revenue and expenditure sides, I think that everything will be OK," the minister told Žinių Radijas when asked if election campaigning could affect the state budget.

"It is realistic to reach the balanced budget target in 2017. I personally believe that there is a strong likelihood that we will see a small surplus when we sum up the 2016 results," he added.

The minister warned, however, that some proposals put forward by politicians could put a strain on public finances, like raising the tax-exempt income threshold or cutting VAT on food. If these proposals are implemented, they would sharply raise the budget deficit, according to Šadžius.

Šadžius said in late April that the country might achieve a balanced budget as early as in 2016.

The government's stability program calls for achieving a balanced budget in 2017 and surpluses of 0.8% and 0.9% in 2018 and 2019, respectively.

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