Lithuania might need to borrow several dozen million euros this year to increase defense funding and this way meet NATO's 2 percent GDP defense spending target.
© KAM

The country plans to use funds borrowed by the Finance Ministry to avoid a more complicated procedure of budget redistribution.

The Finance Ministry has drafted and is submitting an amendment allowing it to use borrowed funds to finance NATO-related financial commitments. The government will discuss the proposed amendment on Wednesday.

It was claimed during the planning of the 2018 budget that Lithuania's defense spending would reach 2.006 percent GDP but due to the country's faster-than-expected growth, that rate might be smaller.

Based on NATO projections published in early July, Lithuania's defense budget should stand at 1.96 percent GDP this year but the Lithuanian government pledged to reach the 2-percent target.

Lithuania's Finance Ministry and the European Organization for Economic Co-operation and Development will update their forecasts for Lithuania in the fall and they will be taken into account when making decisions on using borrowed funds to finance defense commitments.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Vilnius mayor: government not pulling out of stadium project

Vilnius Mayor Remigijus Simasius says Lithuanian Prime Minister Saulius Skvernelis has assured him...

New chief of defense: I am a realist and don’t dream about things we cannot have

Lithuania's incoming chief of defense , Major General Valdemaras Rupsys , says he will seek to...

Russian oil contamination suspect seeking political asylum in Lithuania

Roman Ruzhechko , a suspect in a Russian oil pipeline contamination probe who was detained in...

10 unreported moments: Grybauskaite's diplomacy behind-the-scenes

With Dalia Grybauskaite having ended her second term as Lithuanian president, here is a look at her...

Most-advanced US fighter jets land in Lithuania for 1st time

The United States' most-advanced fighter jets F-35 landed in Lithuania on Thursday.