LITHUANIA'S 2012 BUDGET DEFICIT SET BELLOW 3 PERCENT GDP
Updated 2011-10-20
The Government of Lithuania has set an ambitious target for the fiscal deficit not to exceed 2.8 percent of the GDP in the draft budget for 2012.
Systemic changes and public finance consolidation is to be complemented by substantially increased returns from State-Owned entities (SOE’s) in the year 2012 and behind. All this provide with the solid setting for year 2012 fiscal deficit target of 2.8 percent GDP - half of that foreseen for 2011 (5.3 percent GDP).
According to the Prime Minister Andrius Kubilius, ‘Determined and well developed policy adjustment led to the recovery of the Lithuanian economy and stabilization of public finances. We are among those who started consolidation early, thus now are well placed for closing an excessive deficit procedure and are continuing firmly towards the balanced budget‘.
According to the newly approved 2012 budget plan, the Government expects expenditures to remain the same as in year 2011 - 36,5 billion Litas and public revenues for 2012 are foreseen at 33,7 billion Litas. In addition to that European Union’s structural and other funds’ investments will make 7,2 billion Litas.
The state-owned enterprises plan their input to the state budget in the form of dividends with unprecedented amount of LTL 540 million. The planned dividend amount is 6.3 times higher compared to the current year when the state owned-enterprises transferred LTL 86 million to the national budget, and 12 times higher than the analogous indicator of 2010 when such dividends made LTL 42 million.
Ministry of Economy, Invest Lithuania, www.investlithuania.com
