After the International Monetary Fund has warned that Lithuania this year is facing serious challenges in public finances, an economist says that meeting this year's budget targets will not be easy.
Gitanas Nausėda
© DELFI / Kiril Čachovskij

"All of us had an opportunity to see the latest state budget revenue collection figures and look at the export figures at the start of this year. This information is not so upbeat. Nor is it tragic. However, there are no grounds to rejoice over these statistics. Exports fell and, unfortunately, fell in many product groups. We can see that the Finance Ministry is having difficulty meeting the VAT collection target," Gitanas Nausėda, an adviser to the president of SEB Bankas, said on LRT Radio on Wednesday.

A recent downward revision by the Finance Ministry of its 2015 GDP growth forecast shows that the budget was rather optimistic and with the economy continuing to grow at a slower pace, it will not be easy to implement it, the economist said.

"If it (the budget deficit) exceeded (the projection) by a few tenths of a percent, then neither investors nor creditors would ring alarm bells about it. But if it exceeded it more significantly, say, we had a fiscal deficit twice as high as projected, then that would likely attract investors' attention and not of a positive kind," he said.

The Lithuanian central government sector's deficit for the first two months of this year totalled 241.3 million euros, accounting for around 0.65 percent of this year's projected GDP, according to data from the Finance Ministry.

BNS
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Lithuanian bread is tasted worldwide

One of the most popular Lithuanian bakeries „Vilniaus duona” is counting its stable export results...

New specialized fintech bank setting up in Lithuania

On Friday European Merchant UAB was granted the license issued by ECB, European Central Bank through...

Lithuanian start-ups attracted EUR 70 million in investments in 2018, further breakthrough will be determined by environment improvement

In 2018, the Lithuanian startup community achieved the record-breaking results, i.e. attracted EUR 70...

Vitas Vasiliauskas: the matter of income inequality will become only more acute next year

The cabinet’s tax and public sector policy is not contributing to resolving income inequality...

CityBee is set to join European car-sharing leaders with a 110 mln EUR investment in major fleet upgrade

CityBee Solutions, which operates car-sharing services in Lithuania and Poland, today announced an...