On Monday, the National Audit Office announced that the 2016 state budget was balancing on the brink of violating fiscal rules and the country was not ready to deal with possible financial shocks. The National Audit Office also sees digressions in forecasting revenue – projections of value added tax (VAT) and personal income tax (PIT) collections are particularly over-optimistic.
“I dare to disagree with the National Audit Office’s conclusions regarding PIT and VAT revenue planning. I believe, and many specialists agree, that projections of revenue from these taxes, which have been included in the budget and submitted to Parliament, are very conservative. On the other hand, you know that we are implementing tax administration improvement measures that give tangible results, as far as excise and VAT are concerned,” Minister of Finance Rimantas Šadžius said.
According to the finance minister, additional extra revenue was received from excise, collection of VAT, PIT and social insurance fees have improved.