Lithuania eyes budget surplus in 2016

“We will seek a budget surplus in 2016,” Butkevičius told lawmakers, who are opening the autumn session on Wednesday.

A stabilizing budget policy bill that will obligate the country’s authorities to accumulate reserves if there is a budget surplus will reach the Seimas next year, he said.

New legislation aimed at strengthening public finance discipline and increasing budget revenue has been or is being drafted. The government plans to improve the collection of taxes, curtail smuggling of excise goods, step up the fight against the shadow economy and limit cash payments, the prime minister said.

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“The state budget deficit is narrowing. We no longer have a current account deficit. Our state debt is among the lowest in the EU. Our households have strengthened considerably and bank deposits exceed loans to private individuals by 5 billion litas (EUR 4.5b),” Butkevičius said.

“A string of (credit) rating upgrades reflects the financial markets’ growing confidence in Lithuania,” he added.

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