“The main accents of the next year’s budget is a focus on reduction of social gaps and reinforcement of national defense. The priorities we stick to are our commitments to NATO with the goal of coming closer to the level of 2 percent of the gross domestic product for defense. We are additionally earmarking almost 150 million euros for the purpose in the budget draft. A major share of the spending is envisaged for the implementation of the fundamental structural changes – social model, i.e., close to 250 million euros,” Prime Minister Algirdas Butkevičius said in a press release.
Consolidated central government and municipal revenue, including EU investment and other international support funds, is expected to grow by 5.9 percent next year compared with this year to 9.997 billion euros and expenditure is projected to increase by 5 percent to 10.580 billion euros.
The central government’s revenue should rise by 429.769 million euros, or 5.3 percent, to 8.476 billion euros and expenditure should go up by 372.883 million euros, or 4.3 percent, to 9.06 billion euros. The budget deficit is expected to narrow by 56.886 million euros, or 8.9 percent, to 583.403 million euros.
According to the draft, EU investments and other international financial assistance should be at this year’s level, i.e., 2.101 billion euros.
Due to structural reforms and plans to raise the tax deduction for people with the lowest income and children, the deficit of the public sector should be 0.8 percent of the GDP in 2017, including 0.6 percent of the GDP being the expense of the social model that consists of legal acts of the structural reforms of the labor market and social reforms.