The Lithuanian government is planning to have a balanced budget in 2017 and run a small surplus in 2018-2019, according to the Stability Programme presented by the Ministry of Finance on Wednesday.
“This would allow us to cut Lithuania’s government debt, which now stands at 40% of GDP, reducing it to 35% in the nearest term, by 2019,” Finance Minister Rimantas Šadžius said after a cabinet meeting.
The Stability Programme suggests that the government budget surplus could be 0.8% in 2018 and 0.9% the following year.
The minister said the projections are based on economic growth expectations. The government forecasts 2.5% GPD growth this year and over 3% in subsequent years.
Šadžius also said that tax collection this year should exceed projections.