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2011 Budget Overview

Date

2010 12 21

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2011 budget is based on 2.8 GDP growth scenario as well as the 2010 expenditure level and aimed at reducing the general government deficit from 8.1% estimated in 2010 to the targeted goal of 5.8% of GDP in 2011. The budget was approved by the Seimas (Parliament) of the Republic of Lithuania on 8 December 2010 and signed by the President of the Republic of Lithuania on 21 December 2010.

According to the approved budget plan, the National budget* revenues in 2011 are expected to total LTL 26,830.2 million (EU assistance included), with expenditures foreseen at LTL 29,390.4 million (EU assistance included). The State budget deficit will amount to LTL 2.5 billion.

All the public expenditure (including the National budget*, Social Security Fund, Compulsory Health Insurance Fund), will make over LTL 36 billion (EU assistance excluded). The main part of public expenditure is allocated to the social needs (40.1%), education (15.4%) and health care (12,7%).

EU assistance will make LTL 6,922.4 million. These funds will be invested in all sectors of the economy and the largest share (LTL 4,748 million) will be used for the development of small and medium business, export promotion, modernisation of transport infrastructure, research and development, rural development and agriculture.

Tax Changes in 2011
The tax changes in 2011 are basically designed for the improvement of business environment or related to the commitments to the European Union. The following changes fall under the main changes in these laws: the rate of personal income tax applied on income from individual activities is reduced from 15 to 5 per cent, the excise duty rates on diesel fuel and tobacco are adjusted in line with the EU commitments. More

Main Sources of Budget Revenue:

  • LTL 8,259.2 million (41.5% of budget revenue) from the value added tax (VAT);

  • LTL 3,665.6 million (18.4% of budget revenue) from the personal income tax;

  • LTL 3,476.4 million (17.5% of budget revenue) from excise duty;

  • LTL 1,178.6 million (5.9% of budget revenue) from the corporate tax.

* - National budget consists of the State budget and municipal budgets.

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