The Lithuanian parliament, Seimas, on Thursday approved the 2026 state budget, which includes record defence spending equal to 5.38% of GDP and a deficit of almost equal size. It also includes higher social benefits and pay raises for teachers, doctors, civil servants and other public-sector workers.
The budget passed with 80 votes in favour, 39 against and seven abstentions. Opposition lawmakers sharply criticised a last-minute addition of €15 million for land drainage projects.
The extra funding was proposed by Remigijus Žemaitaitis, leader of the Nemunas Dawn party, who just last week had called the budget “very bad” and signalled his party would not support it.
Finance Minister Kristupas Vaitiekūnas said he was satisfied with the budget, noting it closely aligns with the government’s original proposal.
“I think it deviated very little from the budget we submitted,” he told reporters.
The extra €15 million for drainage was proposed by Remigijus Žemaitaitis, leader of the small Aušra party, who had called the budget “very bad” last week and had not promised his party’s support.
Social Democratic lawmakers highlighted the budget’s people-focused measures, including a higher minimum wage, additional support for vulnerable groups, and more funding for culture and local governments. Algirdas Sysas, head of the Budget and Finance Committee, noted the historic defence allocation.
“Defence is allocated 5.38%, the highest ever,” he said. “There were some shortfalls, but the result is unprecedented.”
Opposition parties criticised the budget as favouring special interests. Conservative MP and former Finance Minister Gintarė Skaistė said coalition partners’ concessions to Nemunas Dawn were made at the expense of culture, media, statutory officials, and infrastructure funding.
“Defence funding was ‘drained’ along with the Social Democrats’ conscience,” she said, referring to the €15 million drainage allocation. She also accused the Social Democrats of attempting to influence public broadcaster LRT.
Liberal MP Viktorija Čmilytė-Nielsen said the budget revealed a lack of trust in the ruling coalition, noting that promises made during the election campaign were repeatedly broken.
Lawmakers also warned that allowing citizens to withdraw funds from the second pension pillar could stoke inflation, while insufficient planned increases in civil servant pay could reduce purchasing power, according to Algirdas Butkevičius of the Democrats “For Lithuania” party.
At the same time, Liberal MP Simonas Gentvilas praised former Defence Minister Dovilė Šakalienė for her role in securing the record defence allocation but criticised the lack of comparable advocacy for culture funding.
The 2026 budget sets revenues, including EU funds, at about €21.07 billion and expenditures at €27.51 billion. The deficit is projected at 2.7% of GDP, rising to 5% if military acquisitions are included. Public debt is expected to reach 45.4% of GDP.
Defence spending, including the State Defence Fund, is set at €4.8 billion. Social security and income support measures receive €1.06 billion in additional funding. Roads will receive €815.5 million, with €2.9 billion expected from EU sources.
The budget also allocates nearly €117 million for raising teacher and public-sector salaries and sets aside about €1.1 billion for other proposals submitted by lawmakers.
The law now awaits the signature of President Gitanas Nausėda.
