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2021.10.14 12:05

Lithuanian cabinet approves 2022 budget package

BNS2021.10.14 12:05

On Wednesday, the Lithuanian government approved next year's draft budget for the central government, municipalities, the state social insurance fund Sodra, and the Compulsory Health Insurance Fund.  

Lithuania's government budget deficit is expected to narrow to 3.1 percent of GDP in 2022, down from 4.4 percent of GDP this year.

According to the Finance Ministry, next year's public spending will focus on national security, investment in education, and a greener, more innovative, and high value-added economy,

Lithuanian Prime Minister Ingrida Šimonytė also expects next year's budget to help reduce poverty in the country.

"We believe that it will improve the lives of groups that are at higher-than-average risk [of poverty]," Šimonytė said in a press conference. "Some of the measures have already been launched, but they will be expanded next year."

These measures include a supplementary pension to single seniors, one of the groups at the highest risk of poverty, she noted.

The draft budget for 2022 also provides for increasing salaries of education, culture, and social workers, police officers, and other public sector workers.

Read more: Lithuanian cabinet approves minimum wage rise to 730 euros

In addition, it calls for raising the minimum monthly wage before tax to 730 euros and the maximum tax-free income to 460 euros as of January 1, 2022.

The average social security pension will increase by 51 euros to 465 euros, while the average pension of people who have the necessary minimum length of service will go up by 48 euros to 489 euros.

The central government's budget revenue is expected to grow by 1.422 billion euros, or 11.4 percent, to 13.86 billion euros, while expenditure is expected to edge down 0.8 percent to 16.481 billion euros.

Sodra's revenue is expected to rise by 504.7 million euros, or 9.5 percent, to 5.837 billion euros next year, with expenditure increasing by 446.7 million euros, or 8.8 percent, to 5.534 billion euros.

The Compulsory Health Insurance Fund's revenue for 2022 is projected at 2.79 billion euros, up by 203 million euros, or 7.9 percent. Expenditure is planned to grow by 300.7 million euros, or 12.1 percent, to 2.79 billion euros.

Municipal budget revenue should grow by 514.5 million euros, or 13.7 percent, to 4.268 billion euros, and expenditure should increase by 512.8 million euros, or 13.5 percent, to 4.312 billion euros.

The budget package will now be submitted to the parliament for approval.

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