VILNIUS - Lithuanian President Gitanas Nausėda said on Thursday that the 2025 state budget passed by the parliament makes it possible to allocate 4 percent of GDP to national defense.
"The fact that we will allocate 4 percent of GDP to defense is encouraging," Nauseda told reporters in Brussels.
"Unfortunately, the previous government talked a lot about our security but even planned to cut the defense budget. We love our country through actions, not words, and I believe we're heading in the right direction," he added.
The draft budget initially allocated about 2.5 billion euros for defense, or just over 3 percent of GDP. However, the new government increased the 2025 borrowing limit by roughly 800 million euros, and borrowing this full amount could raise defense spending to 4 percent of GDP.
Prime Minister Gintautas Paluckas has previously said that defense funding could reach 3.5 percent of GDP.
According to Nausėda, the government will have to find ways to maintain fiscal discipline.
"We've essentially budgeted 4 percent of GDP for defense, but some of that money has to be borrowed. We'll probably have to decide how we treat defense spending if, for example, there is a conflict between the 3 percent budget deficit (rule) and our need to borrow," he said.
Nauseda also praised the government's plans to negotiate with the European Commission for an exemption that would allow additional defense funding even if it exceeds the 3 percent GDP budget deficit limit outlined in the Maastricht criteria.
The new government made only minor adjustments to the 2025 state budget, as its deficit currently stands at the maximum allowable 3 percent of GDP, but plans to revise it next year.
The central government's budget revenue is projected to total 17.98 billion euros next year, with expenditure planned at 23.02 billion euros.
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