Many countries' budget deficit will be bigger than Lithuania's – president

  • 2020-10-13
  • BNS/TBT Staff

VILNIUS – Lithuania will definitely have a budget deficit next year but many other countries will have bigger deficits, Lithuanian President Gitanas Nauseda says, adding that it will be determined by the economic situation.

"The budget will definitely have a deficit and not the 13th pension will be to blame but just the economic situation. Many countries today have even bigger deficits. So since the economy is going down, we will not avoid a budget deficit," Nauseda told journalists during his visit to the western city of Taurage on Tuesday.

"It’s important for it to be sustainable and then be reduced with every year until we get back to the norm," the president added.

Presidential adviser Simonas Krepsta said last week the budget decision should stand at 5-6 percent next year. In his words, a budget deficit is justified during the crisis time to cushion the economy and safeguard jobs.

Meanwhile, Finance Minister Vilius Sapoka said earlier next year's deficit budget would be "within common sense limits" and would not exceed 3 percent GDP in 2022.

The government will deliberate the country's 2021 budget on Wednesday and is set to be put before the Seimas on October 17. The budget will be already adopted by the next parliament.