Lithuania might have to revise its national budget, bank analyst says

Although the 2015 state budget was drafted expecting a 3.4-percent gross domestic product (GDP) growth, in March the Ministry of Finance reduced 2015 growth forecast to 2.5 percent, while the Bank of Lithuania, to 2.7 percent. The International Monetary Fund also revised Lithuania’s GDP growth in April and reduced it to 2.8 percent. According to DNB analysts, the country’s GDP in 2015 should grow 2.5 percent.

“In my eyes, either the budget will be revised or the state will have to finance the deficit by borrowing,” said the analyst.

Related Post

According to her, currently conditions for the country to borrow are very favourable due to the quantitative easing programme implemented by the European Central Bank. However, Genytė-Pikčienė says that when it comes to finances of such a small and open economy as Lithuania, the government should strive for a fully balanced budget. The central government deficit in January-February 2015 totalled EUR 241.2 million and year-on-year was lower by EUR 41.2 million.

Minister of Finance Rimantas Šadžius said in late March that in spite of the reduced economic growth forecast there were no objective reasons to revise the budget. He added that the economic growth rate is not directly related to budget revenue. According to the minister, the first two months of 2015 did not show negative tendencies as 99.8 percent of the projected national budget revenue was collected.

Share

Recent Posts

  • Foreign affairs

“No need to mince words”: an assessment of what Trump’s victory means for Lithuania

"We can shout very loudly, but it won't change the position of the American people,"…

2 days ago
  • Latest

Lies, disrespect and mockery: experts assess Blinkevičiūtė’s “gift” to voters without scruples

From mocking messages flooding social networks to harsh criticism from political experts, the decision of…

1 week ago
  • Foreign affairs

Another year in the sovereign history of Kazakhstan

Republic Day has been celebrated in Kazakhstan as the main national date since 2022, giving…

2 weeks ago
  • Defence

In the assessment of NATO’s readiness for war with Russia, there is also a warning about the Baltic states: what is the Kremlin’s wild card?

According to Lrytas.lt, the North Atlantic Treaty Organisation (NATO) faces a new geopolitical reality with…

2 weeks ago
  • Tribune

The Citus projects: The Kaip Niujorke by CITUS project continues – the spirit of New York unfolds in Vilnius, and the second phase is launching

In September, Citus – a creative real estate projects’ development and placemaking company – began…

2 weeks ago
  • Latest

These parties will enter the Seimas for the third time in a row. How many votes did they lose, and how many did they gain?

As various parties emerge, disappear or reorganize themselves in the political space, the Lithuanian Social…

3 weeks ago