Lithuanian govt endorses 2023 budget bill

  • 2022-10-07
  • BNS/TBT Staff

VILNIUS – The Lithuanian government on Friday approved the 2023 state budget bill and it will be put before the country's parliament, the Seimas, next week.

State budget revenue will grow by 3.4 percent next year (510 million euros) to stand at 15.62 billion euros, including EU funds. Expenditure is projected to go up by 6.1 percent (1.07 billion euros) to 18.61 billion euros.

The projected state budget deficit stands at 4.9 percent, and the public debt will rise to 43 percent of GDP.

The state plans to spend 1.930 billion euros to mitigate the impact of energy price increases on households and businesses.

The state vows to compensate for the public electricity price for households to make sure it will not exceed 28 cents per KWh in the first half of the year and 33 cents in the second half.

Businesses would get state compensation for electricity prices exceeding 24 cents per KWh in the last quarter of this year and 28 cents in the first quarter of next year.

Also, businesses with energy costs amounting to at least 10 percent will also have their tax recovery suspended until late April.

Almost 56 million more will be spent on VAT relief for district heating for this heating season, with the state budget covering the difference for suppliers.

Moreover, the existing reduced 9 percent VAT rate for hotels will be made permanent, and that for catering companies, cultural and sports events and performers' services will be in place until the middle of next year. This will require 66 million euros.

Moreover, 1.552 billion euros will be spent on raising residential income over the next year, 275 million euros will be spent on security, and the state will spend more than 2.9 billon euros on investments in various areas, using different funding sources.

National defense spending should remain at 2.52 percent of GDP.

Investment into digital transformation is estimated to stand at 192 million euros, and 312 million euros will be invested into science, business and innovation. Health care will receive 140 million euros in investment, while 151 million euros will be allocated for job seekers, improving the quality and accessibility of social services.

A further 607 million euros is earmarked for the transport sector. The money will be used to adapt the rail network to international military mobility and to improve rail and road transport links.

231 million euros will be spent on the implementation of political parties' agreement on education, including more than179 million euros to be spent on raising salaries for teachers, lecturers and researchers.

The social insurance fund SoDra's budget revenue is projected at 6.652 billion euros, and spending should amount to 6.416 billion euros. The balance of the Compulsory Health Insurance Fund is expected to stand at 3.049 billion euros, and the municipal budget is projected to raise 5.001 billion euros in revenue and spend 5.099 billion euros.