„As regards the debt forecast, (...) it will certainly, first and foremost, remain within the limits set by the Maastricht criteria. (...) It will definitely not exceed 60 per cent. (...) We are currently at just 45 per cent,“ the finance minister said in the Seimas on Thursday.
As reported by ELTA, Prime Minister Mindaugas Sinkevičius presented the main directions for next year’s state budget on Thursday and confirmed that the general government deficit could reach 3.8 per cent of GDP, exceeding the 3 per cent limit set out in the Maastricht criteria.
Finance minister Valys has not yet disclosed the exact size of the deficit, but emphasised that other European Union (EU) Member States face similar challenges. According to him, 12 EU countries are already forecasting that they will exceed the 3 per cent deficit threshold next year.
The minister also noted that Lithuania is seeking exemptions from EU fiscal rules relating to increased defence spending and the exceptional security situation.
The government’s draft budget for 2027 allocates EUR 4.8 billion, or 5 per cent of GDP, to defence. Compared with this year’s Ministry of National Defence budget, funding is set to increase by EUR 36 million.
No political support for the tax
Valys says he sees no grounds for amending the Lottery Tax Act, as the Ministry of Finance – which drafted the bill and faced criticism as a result – had intended to propose, because it lacks political support.
„This bill (...) was not my personal initiative. The deputy minister responsible for this area prepared it. I trust my team and do not believe that anyone should be dismissed for submitting a proposal, especially when all the relevant institutions were consulted for their assessment,“ said Valys at Thursday’s plenary session of the Seimas.
The minister said he saw no point in continuing with the draft amendments to the law, but emphasised that the current lottery tax system is not good.
„However, this does not mean that the current system is good and should not be changed. At present, all funds collected from the lottery tax go into the state budget. Still, there is no direct mechanism to ensure that sport, culture and other activities beneficial to society are funded from this revenue,“ he said.
According to the minister, the problem has not gone away, so it is essential to seek other solutions that would ensure transparent and sustainable funding.
As reported by ELTA, the Ministry of Finance has tabled a draft amendment to the gambling tax legislation that proposes allocating 10 per cent of the lottery tax to the budget, with a further 8 per cent going to non-governmental organisations and other beneficiaries.
The Ministry of Finance has calculated that, if the aforementioned changes to the lottery tax were adopted, the budget would lose EUR 11.9 million annually. This figure is based on the lottery organisers’ performance figures from last year.
However, the Democrats, partners in the ruling coalition, have already made it clear that they will not support such a bill – Health Minister Linas Kukuraitis said his party would propose increasing taxes on the lottery industry.