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Convergence Programme of 2012 sets deficit and debt reduction targets

Date

2012 04 25

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Vilnius, 25 April. The Government approved the Convergence Programme of Lithuania of 2012, which sets target for the sustainable public finances in 2015.

In order to achieve this objective, the fiscal deficit should be below 3% of GDP this year, decrease to 2% of GDP next year and should continue to decline to 1% of GDP in 2014. The General Government debt should decrease from 40.2% of GDP in 2012 to 34.9% of GDP in 2015.

The Government aims to reduce the fiscal deficit by limiting expenditure growth, improving tax administration, reducing the shadow economy and allocating the windfall revenue for this objective.

Since 2011 the updated Convergence Programme is submitted to the European Commission (EC) in April every year, after the following year budget drafting works are started. The European Commission has advanced the submission of the Convergence Programmes, anticipating that thus the Government will have a possibility to receive the European Council’s opinion and recommendations before submitting the following year budget to the Parliament (Seimas).

 

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