The budget is presented in the Seimas: questions arise about sustainability, attention to the disadvantaged, and justice about pensions

Higher minimum wages, rising incomes for those earning the least, faster pension growth and no new taxes – such fundamental changes are expected next year with a new budget. The government has previously estimated that the debt has stabilized, with a budget deficit projected at 3.1 percent. GDP, but fears have been expressed that members of the Seimas may try to increase the budget by other expenditures.

The budget was submitted to the Seimas for further consideration. At the same time, amendments to the laws related to raising pensions, setting the pension of single persons, raising the salaries of civil servants, income tax relief and others are presented.

Members of the Seimas question sustainability

G. Skaistė told the members of the Seimas that the budget stabilizes the growth of general government debt at 45 percent of the gross domestic product (GDP).

“It simply came to our notice then that we would not have any major financial problems in the coming periods sustainability and public administration, ”said G. Skaistė.

However, not a single parliamentarian questioned that.

Algirdas Butkevičius, a representative of the “Vardan Lietuvos” faction, said that he would have very serious doubts about the sustainability of the budget in the coming years, he was surprised by the forecasts that almost 60% of corporate income tax would be collected. more than this year. The parliamentarian estimated that the volume of retail trade will not grow rapidly next year, wages will not grow as fast as this year, and problems are accumulating in the transport sector, in the port.

“How can you dispel my doubts?” A. Butkevičius asked.

Algirdas Butkevičius

© DELFI / Andrius Ufartas

G. Skaistė answered that many institutions make forecasts and the forecasts of the Ministry of Finance next year are the most cautious.

“The growth of the public sector DU will be about 8%, the number of employees is also growing, and the DU fund will grow even faster than the growth of wages. Good investment indicators are observed, they are growing in double digits, and forecasts for economic growth are based on sustainable indicators.

Lukas Savickas assured that many aspects of the budget are of concern.

“On the one hand, the ministries that should actually carry out the strategic tasks of economic transformation are experiencing significant funding cuts. And at the same time, there is a new line in your budget – it is planned to form a new line worth a billion cats in a bag, ”said L. Savickas.

The Minister explained to him that the funding allocated to the ministries is related to the use of borrowed funds and EU funds.

“If one investment project takes place in one year, it does not exist in the next year, those processes are related to investment processes. Appropriations for both the Ministry of Economy and Innovation and the Ministry of Economy are declining precisely for these reasons. This is also related to the reserve program of progress funds of the Ministry of Finance, which includes EU structural funds and co-financing funds, ”explained G. Skaistė and promised that additional appropriations will reach the ministries from the program when development programs and measures are approved.

Gintarė Skaistė

Gintarė Skaistė

© DELFI / Josvydas Elinskas

Rima Baškienė thanked for the attention of pensioners and the disabled.

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“But when comparing EU countries, well, we still have a long way to go. “Thinking about the increase in funding for education and environmental labels, it was not possible to increase the social space even more significantly,” said R. Baškienė and doubted whether the problem of poverty of young families and children was given due attention.

Ms Skaistė replied that the 4 groups with the highest risk of poverty had been identified and that efforts were being made to focus on those groups: euros extra. There is funding for disability programs, indexation of benefits. ”

Social Democrat Rasa Budbergytė complained about the lack of transparency and said: “Your explanatory note – I have not seen such a short vision yet, and it does not contain any information that you show on the slides. It demonstrates either your great fear or your great disrespect for the Seimas. “

The MEP also questioned whether a generous budget could contribute to a further rise in rising inflation.

Rasa Budbergytė

Rasa Budbergytė

© DELFI / Andrius Ufartas

G. Skaistė emphasized that the budget is accompanied by an additional document “The State Budget in Brief”, which provides more information that is understandable to everyone. She also promised to develop a debt management strategy next year that will discuss how debt will be managed and return to a sustainable level in the medium term.

Rita Tamašunienė feared that small businesses in the regions may not have the opportunity to increase wages as the minimum increases: those undertakings have as much income as they have ‘.

Salaries will rise

Minister of Finance Gintarė Skaistė singles out four main directions in the budget – national defense, opportunities for Lithuania, people’s income, as well as poverty reduction.

The government has already set a minimum monthly salary (MMA) from next year’s € 642 to € 730 before taxes next year.

Also, in order to reduce taxation on labor for low- and middle-income earners, a higher non-taxable income (NPD) is proposed from 2022. The NPD currently stands at up to € 400 a month, with an increase to € 460, but only for those whose monthly income does not exceed the average wage.

“The salaries of teachers and lecturers have been increased since January 1, as well as the salaries of cultural and artistic employees are increasing, for employees in the social field, officials of the internal service system and medics,” says G. Skaistė.

It is proposed to increase the amount of the basic salary, which is relevant for civil servants, from the current EUR 177 to EUR 181, which is about 200 thousand euros. Monika Navickienė, Minister of Social Security and Labor, previously presented the salaries of public sector employees, whose salaries would increase from 16.8 to 129 euros.

M. Navickienė named in the Seimas that with the increase of the basic amount, the salaries of A, B and C level employees would increase from 107 to 112 euros, for the deputies of administrative units – 109-116 euros, and for the heads of institutions – deputies – 205-210 euros. Teachers’ salaries would increase by an average of 100 euros.

“We must assess the economic situation as it is today, and both our budgetary possibilities and the agreements we make on the basis of a national collective agreement,” said Ms Navickienė.

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Vytautas Gapšys, a representative of the Labor Party, taught that raising the basic amount does not determine the salaries of public sector employees, as it does not correspond to the change in salaries in the market. Ms. Navickienė disagreed: “I would say that this increase, as it is the largest in a decade, is a solution. The salary increase will both reach and affect a large part, about 200 thousand. workers”.

Almost three-quarters of workers would receive higher incomes. In order to assess the evolution of remuneration “in the hands” next year due to changes in MMA and NPD, you can use the Delfi calculator.

Those who earn MMA can expect an extra € 65 in their hands next year.

G. Skaistė reiterated that no tax changes are planned next year, except for the change of the amount of non-taxable income.

Pensions will increase

The average social security old-age pension would increase from € 414 to € 465, an increase of € 51. Pensions with the required length of service would increase from an average of € 441 to € 489, an increase of € 48.

The pension indexation coefficient is 11 percent, which is the average increase in old-age pensions. The size of the state pension base is set at 59.35 euros.

“We are striving for the pensions to grow faster than established by legal acts so far,” said M. Navickienė.

Member of Parliament R. Baškienė agreed that it was necessary to solve the problems of small pensions, increase the indexation, but she did not understand why holders of low length of service would receive the same basic pension as after accumulating the required length of service.

“The refusal to influence the length of service is assessed very ambiguously, especially in relation to those who have had a long service but a low salary, their pensions are approximately 100 euros lower than the average,” R. Baškienė assessed.



Ms. Navickienė explained that the same basic pension would be for persons who have accumulated 15-30 years of experience, there are about 75 thousand such people, including two thirds of women who often raised children and cared for relatives. And with a further increase in seniority, she said, the pension would increase.

“All and the most diverse options and projects were considered, and we discussed a lot with experts about which model could best respond to the at-risk-of-poverty rate in which the Lithuanian people live,” M. Navickienė assured.

According to her, the problem of the shadow economy needs to be addressed in other ways, but the problem of small pensions cannot be overlooked.

Tom Tomiln asked what would happen to the pension supplements that are given to small pension recipients, whether they would be canceled. Ms. Navickienė explained that the premiums will no longer be needed for those persons whose income due to the growth of pensions will reach the respective limit, in the long run the premiums could be waived.

Algirdas Sys was outraged that poverty is being fought through unfair treatment of people who have worked honestly and paid contributions.

EUR 32 per month will be available to single people of retirement age and the disabled.

760 million will be allocated for social security next year. This will be mainly due to faster pension growth.

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The state will transfer 21.59 Euros per month to each participant of pension funds every year next year. After all, the incentive for accumulation is 1.5 percent of the average salary in the previous year.

Significantly more taxes are expected to be collected

State budget expenditures will amount to 16.481 billion euros next year, while revenues will amount to 13.86 billion euros.

Revenues in the budget are projected to grow by 11.4 percent, or € 1.4 billion, with much of that amount coming from higher taxes.

It is planned that value added tax (VAT) will raise EUR 556.5 million. EUR, or 12.8%. more, corporate income tax will pay 58 percent. more, or an additional 458 million. The personal income tax will be 15%, or 305 million. euros more.

Finance Minister G. Skaistė promised that there would be no new taxes earlier when presenting the budget.

“No taxes with this year’s budget, no NPD replacement, we do not offer. All the discussion about possible tax changes will take place, I think, in the long run. We really have no urgency. It was decided that during the pandemic, tax changes were not appropriate due to uncertainty. Only such solutions will be offered that receive only wider support from the public and political parties, ”said G. Skaistė.

Expenditure next year will even be 1.2 percent. lower compared to the revised 2021 budget (€ 16.6 billion) and revenue grew by 11.4%. (€ 12.4 billion in the revised budget for 2021.) However, next year’s budget will see a significant reduction in the costs of managing the COVID-19 pandemic, such as business support and health care, which, if this effect is eliminated, would lead to an increase in budget expenditure of 8.3%.

Most of the funds will be directed to social security, economy, education.

Delfi has already estimated that the appropriations allocated to some ministries next year will decrease significantly. The lowest cost reductions are for COVID-19, with a margin of € 623 million lower than this year. It continues to line up Ministry of Economy and Innovation (EIM), with a budget of EUR 422 million, almost halved. Of this amount, 230 mln. € 159.5 million from EU funding this year, € 93 million from EU funding and € 93 million from EU funding. EUR – a decrease in the funds of the economic stimulus plan “DNA of the future economy”.

Ministry of Energy appropriations decrease by as much as 54%, or EUR 217.5 million. 206 million Of this amount, € 1 billion is accounted for by declining EU and other international support. However, the Ministry of Energy itself explained that the decline is not as sharp as and the funds are only shifted.

“In the coming years, it is planned to absorb over 2 billion from the former financial perspective of the EU structural funds, the future financial perspective of the EU funds, and the New Generation Lithuania plan. euros, ”G. Skaistė emphasized.

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