The Lithuanian government will consider the country’s 2024 budget bill on Thursday.
In her interview with BNS on Wednesday, Prime Minister Ingrida Simonyte said the government deficit would rise to 2.9 percent of GDP next year. This year, she said, it will amount to around 2 percent, instead of the initially planned 4.9 percent.
The budget bill has been prepared with caution in view of the European fiscal discipline rules that come into force next year and stipulate that the government deficit cannot exceed 3 percent of GDP, Simonyte said.
In her words, the majority of the extra spending next year will be spent on pensioners, social benefit recipients, teachers and aid for Ukraine.
State budget revenue is expected to increase by around 7.5 percent in 2024, mainly due to economic growth and a 7 percent increase in the wage bill.
State spending will grow by almost 2 billion euros next year. One billion will be spent on indexed pensions and benefits, and 390 million euros will be allocated to the education sector, mainly for pay increases for teachers higher school lecturers. A further 100 million euros will be need for pay increases in the public sector and 340 million euros will be spent on aid for Ukraine.
Budget revenue will be reduced by a 20 percent increase in the no-taxable income rate and the extension of corporate tax breaks for investments and film production.
Source: BNS
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