Approved revised draft budgetary plan which starts to implement the new Government Programme already in 2025
Today, the Government approved the improved draft budgetary plan for 2025-2027 which has been prepared by the Ministry of Finance. Taking into consideration the main objectives of the Government Programme, a few substantial changes are already introduced in the 2025 budgetary plan, i.e. increased share for defence, greater focus on improving the country's external and internal security situation, additional funds for the Gravel Road Programme and for non-formal education basket.
“Within the 3% deficit limit, several important changes could be envisaged in certain areas, i.e. additional funds for defence, security enhancement, asphalting of gravel roads and for non-formal education basket. One of the most important amendments to the budgetary plan is that, in order to be prepared for effective defence, we will strive for our set target of at least 3.5% of GDP for defence financing, therefore, we have significantly increased the borrowing limit. Investments in the national defence is now a top priority”, says Minister of Finance Rimantas Šadžius.
The improved draft budgetary plan was prepared taking into account the proposals received from the committees, commissions, members of the Seimas, public authorities and bodies as well as associations, totalling for almost EUR 650 million.
While improving the draft State budgetary plan for 2025-2027, the main goal is to ensure security enhancement and defence needs of the country. Taking into account the real needs dictated by military advice, the State borrowing limit has been increased by EUR 800 million, providing for the right to borrow for national defence purposes, including military mobility and dual-use (civil-military) transport infrastructure, as well as military infrastructure necessary to ensure the host country’s support and to finance capital investments in defence industry developed in Lithuania.
Moreover, in 2025, an additional EUR 7.3 million is allocated to institutions operating in the field of security, with additional funds for salaries, information technology and other needs: EUR 6.2 million to the State Security Department, EUR 0.6 million to the Lithuanian Presidency of the Council of the EU and to ensure the security of the Lithuanian diplomatic missions by allocating funds to the Dignitary Protection Service, and almost EUR 0.5 million to increase salaries of employees of the Special Investigation Service and to create new positions.
Another important area of focus was the Lithuanian roads. EUR 20 million is earmarked for asphalting gravel roads. It is estimated that for allocated funding next year it will be possible to initiate the modernisation works of about 25-30 km long sections in Lithuania provided for in the Gravel Road Programme. The revised draft budgetary plan for 2025-2027 has been supplemented with a provision granting the Ministry of Finance the right to borrow for the design, construction, reconstruction and repair of transit roads of national importance (bypasses) and road structures (bridges, viaducts) on roads of national importance.
In order to ensure universal non-formal education, funding for this area has been increased. The revised draft budgetary plan finds the possibility of increasing the funds allocated from the State budget to the non-formal education basket by a quarter – EUR 5 million.
In order to expand the transport fare scheme and taking into account that the initial draft budgetary plan for 2025-2027 already provides for new transport fares, the improved draft budgetary plan allocates funds (EUR 2.5 million) for an additional 50% ticket with a transport privilege for people who have reached retirement age on long-distance scheduled buses and passenger trains. The initial draft budgetary plan provides for privileges for children, accompanying persons and victims (participants in in the aftermath of Chernobyl Nuclear Power Plant; persons who completed compulsory military service in the Soviet Army, Afghanistan). EUR 6.5 million is planned for these privileges in 2025 and, following the adoption of amendments to the relevant laws, they will enter into force on 1 April 2025.
Slightly more than EUR 0.5 million is allocated for the organisation of the Bucharest Nine (B9) Summit in Lithuania in 2025. The B9 initiative is a platform of political cooperation of nine countries aimed at strengthening Euro-Atlantic security between the three Baltic states, Bulgaria, the Czech Republic, Poland, Romania, Slovakia and Hungary. The event, which will take place in Lithuania, is very important for regional security and for strengthening the country's geopolitical position.
The revised draft budgetary plan for 2025-2027 prepared by the Ministry of Finance foresees the general government deficit to remain unchanged at -3% of gross domestic product (GDP) next year. The general government debt is estimated to be 44.4% of GDP next year.