Lithuania submits its draft budget to EC and Eurogroup

The draft budget states that in 2016, the general government deficit will constitute no more than 0.9 percent of Lithuania’s GDP, this is an improvement of 0.3 percent compared to what was approved for 2015 in the Law on the Approval of Financial Indicators of the State Budget and Municipal Budgets as well as the Stability Programme.

“Better than projected general government balance was influenced by continued and new effectively implemented tax administration measures, including the ones directed at better VAT administration. Surplus local government balance will also have a positive impact. Whereas 2015 budget was expected to go into deficit when it was being drafted,” said Finance Minister Rimantas Šadžius.

In 2016 the general government deficit is projected to account for 1 percent of GDP, after deducting expenditure on the systemic pension reform stage in 2016 which amounts to 0.1 percent of GDP.

The submitted project includes medium-term economic development prospects, changes of the tax system and expenditure policy in 2015-2016, projected government debt and other indicators.

The EC should return the evaluation of Lithuania’s budget in two weeks.