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2015.09.08 13:45

Increase in defence spending will not affect pension compensation – Minister of Defence

(BNS) An increase in defence spending will in no way affect plans to compensate pension cuts, Lithuania’s Minister of National Defence Juozas Olekas says.

 (BNS) An increase in defence spending will in no way affect plans to compensate pension cuts, Lithuania’s Minister of National Defence Juozas Olekas says.

“We have agreed there will be no contraposition of the defence system and pension compensation as different funds are planned for pensions and the defence system will get additional funds coming from the government’s successful sale of certain shares. Therefore, additional money appear in the Privatization Fund,” Olekas told the Žinių Radijas news radio on Thursday.

The minister noted, however, that funds in the Privatization Fund as well as the government’s other reserves might not be sufficient and a review of the this year’s budget would be one of the extreme measures. According to the minister, the defence system needs around 130 million litas (EUR 37.6 million) in additional funding this year.

Olekas also said he had agreed with Finance Minister Rimantas Šadžius the first transfer to the national defence system would be made following accumulation of around 30-40 million litas

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