The Seimas decides on the state budget for next year: the population’s income will increase and funds for defense will increase

However, after adjusting the project, 0.1 percent At this point, the public sector debt increased and its deficit by the same amount, the latter already reaching the limit of the Maastricht criterion – 3 percent. of GDP.

Changes after the government improved – up to 1.3 billion were requested. euros

At the end of November, the government approved the improved draft of the state budget for 2024. According to the Ministry of Finance, the draft has not fundamentally changed: several improvements have been made “while maintaining the focus on the most most important today.

The draft budget was adjusted taking into account the proposals received from the committees, commissions, members, institutions and state institutions of the Seimas, which were received for more than 1.3 billion. euros, as well as legal acts already adopted by the Seimas or in the process of being finalized.

“Without deviating from essential budgetary priorities – education, increasing the population’s income, strengthening security – and without addressing national problems, we are allocating additional funds to education, culture, increasing the population’s income, strengthening security and improving infrastructure,” said Finance Minister Gintarė Skaistė. is quoted as saying in the report.

According to her, an additional provision on the right to borrow for national defense financing is also included.

Another 157 million is allocated to Lithuanian roads. A total amount of 872 million euros is expected to be spent on improving road infrastructure in 2024. euros. An additional 8.6 million is planned to increase the population’s income. euros.

An additional amount of 31.4 million is allocated to the Ministry of National Defense. euros, as they will be received in the coming years as compensation from Lithuania for its active support to Ukraine under the European Peace Facility.

An additional 3.5 million 4.2 million euros are reserved for education. euros are allocated to the cultural sector. 13.8 million euros are allocated for other purposes.

The Cabinet of Ministers approved some of the proposals of the members of the Seimas

This Monday morning, the government approved the conclusion of the Seimas regarding the draft budget. After considering the parliamentarians’ proposals, the Council of Ministers decided to support 3 of them. Finance Minister Gintarė Skaistė said during the meeting that the value of the Seimas members’ proposals reached 690 million. EUR, the proposals approved by the government amount to 645 thousand. EUR, ELTA announces.

The proposal to increase the funds that should be allocated to the Ministry of the Interior by 45,000 credits was approved. euros, allocating them to the Migration Department, for the development of the Lithuanian migration information system.

According to the news agency, G. Skaistė hopes that the project will receive the support of all coalition partners. However, the coalition Freedom Party has not yet revealed how it will vote on Monday. Opposition representatives criticize the project. For example, the Social Democrats issued a statement on Tuesday saying they would not support the budget.

Income and expenses: 1.4-1.6 billion euro growth

16.98 billion are expected in the amended state and local finance bill. Revenues in euros (including 2.49 billion euros of EU support and other international aid) (previous version had around 17.01 billion euros of state budget revenues).

The project is estimated at 20.612 billion. Allocations in euros (including 3.2 billion euros from the EU and other international support) (the previous project had a cost of 20.5 billion).

Compared to last year, budget revenues will increase by approximately 1.43 billion. EUR (or 9.2 percent, it was EUR 15.54 billion) and the expenditure amounted to approximately EUR 1.6 billion. euros (or 8.5 percent, compared to 19 billion euros last year).

State budget expenditures in 2024:

According to the Ministry of Finance, the draft state budget focuses on the implementation of the agreement on education and on three priority directions: increasing the population’s income, strengthening security and investments.

The 2024 budgets provide a total of around 27 billion. Expenditures in EUR (excluding EU and “New Generation Lithuania” loan funds). The largest part is allocated to social security – more than 10 billion. 3.8 billion euros will be spent on health care. EUR, for education – 3.8 billion, for defense – 2.1 billion. euros.

Education funding increased by 14 percent, with an additional allocation of more than 387 million. euros, and with the latest corrections, this would represent around 390 million. euros.

Most of this amount exceeds 219 million. 84 million euros will be allocated to the salaries of teachers and teaching staff. euros – to increase the salaries of teachers, researchers and non-academic employees.

State budget revenues in 2024:

One of the priorities is people’s income

In the 2024 draft budget, more than 1.7 billion are planned to increase the population’s income. euros. Of this amount, more than one billion euros will be allocated to increasing employee income. Increase in the minimum monthly wage (MMA) by 10 percent. from 840 to 924 euros (709 euros “in hand”) and 20 percent. increasing the amount of non-taxable income (NPD) from 625 to 751 euros.

These decisions will result in an additional income increase of 76 euros for those on the lowest incomes and will affect those earning up to an average wage (VDU). In Lithuania, up to a viewing screen earns 811 thousand people. people.

Compared to this year, the average pension with the required length of service would increase by 70 euros and the change would affect 623.5 thousand. people. To these funds are added 55 million. euros for social services. In the draft budget, the increase in old-age pensions is just over 12 percent. estimated at 519 million euros, which will mean an average increase of 70 euros per month for seniors with the required seniority (the pension increases from 575 euros to 644 euros).

The benefit for investment projects is extended for 5 years, as well as the benefit for the production of cinematographic films.

Funding for the Ministry of National Defense will exceed 2 billion in the years to come. euros, or 2.71 percent. of Lithuania’s gross domestic product (GDP).

Lithuania plans to invest 3.2 billion euros, the largest part – more than 1 billion euros – will be dedicated to green transformation.

On November 21, the Seimas adopted the 2024 draft budgets of Sodra, the Pension Fund (PAF) and the Compulsory Health Insurance Fund (PSDF).

In the “Sodra” 2024 budget, revenues are estimated at 7.64 billion. euros, or 8.2 percent. (579.5 million euros) higher than expected in 2023, and costs – 7.06 billion. euros – 11 percent. (699.5 million euros) more than in 2023, ELTA reported.

Municipal budget revenues will reach around 5.83 billion this year. million euros EUR, expenses – 5.93 billion euros, growth reaches 16 percent respectively. In addition, municipalities will be able to borrow up to 103.5 million. euros.

At the limit: it is not possible to increase costs further

Next year, the European Union returns to compliance with budgetary discipline, so it is important that Lithuania does not exceed the Maastricht criteria, one of which is 3 percent. limit of the budget deficit.

Public sector balances (after revision of the draft budget):

In the updated draft of the state budget prepared by the Ministry of Finance, it is forecast that the public sector deficit in 2024 will increase slightly compared to the initial draft of the state budget for 2024 and will reach 3 percent of the amount raw. domestic product (GDP), of which -2.5 percent. – after deducting temporary measures (aid to Ukraine), public sector debt will amount to 39.9 percent. GDP.

As a result, in the initial draft, the public sector deficit was -2.9 percent, the public sector debt was 39.8 percent. (The Maastricht criterion for debt is 60 percent of GDP).

The first reading of the 2024 state budget in the Seimas took place on November 21, the second on the 23rd.

Source: The Delfi





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