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“.
|Populiariausi straipsniai ir video

Nausėda condemns ex-speaker's remark about Tomasevski

Lithuanian President Gitanas Nauseda condemned on Tuesday a recent remark by Arunas Valinskas , a...

Skvernelis calls for 2-week 'pause' in public life

Lithuanian Prime Minister Saulius Skvernelis called on Tuesday for a two-week "pause" in public...

202 new coronavirus cases

On Monday, 202 new COVID-19 cases were detected in Lithuania . In total, the country has already...

3 more countries added to isolation list

Travelers arriving in Lithuania from Italy , Bulgaria and Liechtenstein are required to...

Voters line up in Vilnius as early voting in parliamentary runoff begins

Several dozen voters braved the morning chill to queue outside a polling station in Vilnius'...

Top news

Nausėda condemns ex-speaker's remark about Tomasevski

Lithuanian President Gitanas Nauseda condemned on Tuesday a recent remark by Arunas Valinskas , a...

Skvernelis calls for 2-week 'pause' in public life

Lithuanian Prime Minister Saulius Skvernelis called on Tuesday for a two-week "pause" in public...

202 new coronavirus cases

On Monday, 202 new COVID-19 cases were detected in Lithuania . In total, the country has already...

Minister: budget deficit to narrow, debt-to-GDP ratio to stabilize in 2021

The Lithuanian state's 2021 budget bill has been drafted with the aim of reducing the general...

Vivek Wadhwa | D+ nariams

The genetic engineering genie is out of the bottle

The next pandemic could be bioengineered in someone’s garage using cheap and widely available...

|Maža didelių žinių kaina