G. Skaistė: "This year we will reach 3% of GDP defence spending and the promised level of teachers' salaries"
After assessing Lithuania's economic growth and further projections, as well as the decisions of the Defence Fund adopted yesterday, the Ministry of Finance proposes to allocate additional funds for the necessary procurement of defence systems and keeps promises regarding additional increases in teachers' salaries from 1 September. EUR 168 million is allocated to implement the requests of both the Ministry of National Defence and the Ministry of Education, Science and Sport. According to the latest economic forecasts, with these additional funds this year defence spending will reach 3% of Lithuania’s gross domestic product (GDP), and the salaries of teachers and other teaching staff will account for 130% of the average national wages (AW).
Defence spending will reach 3% of GDP this year
“Yesterday, after the adoption of the Defence Fund package prepared by us in the Seimas and the updated economic projections, we can see what long-term projects we have sustainable financing for and we can launch them already this year. We make use of the powers granted by the Budget Law and provide additional financing from borrowed funds for advance payments for the acquisition of the necessary short and medium-range air defence systems and infantry fighting vehicles. As a result of this decision, we are reaching a 3% of GDP defence funding level this year,” Minister of Finance Gintarė Skaistėnoted.
The Ministry of Finance responds to the Ministry of National Defence's request to allocate EUR 136 million to accelerate the implementation of important armaments projects. EUR 51 million of this amount will be channelled to advance payments for medium-range air defence systems, another EUR 45 million for short-range mobile air defence systems and EUR 40 million for infantry fighting vehicles.
Teachers' salaries will reach 130% of AW this year
“According to the updated projections of the Lithuanian economy, we assessed the amount of additional funds needed to meet the Government’s target on the level of teachers’ salaries, in addition to the budgeted appropriations. That is why we are allocating additional funding to increase the salaries of teachers and teaching staff, raising them from 1 September to 130% of AW”, Minister of Finance Gintarė Skaistė stated.
Using the powers granted by the Law on the Approval of Financial Indicators of the State Budget and Municipal Budgets to borrow on behalf of the State, the Ministry of Finance fulfils the promise made by the Government to teachers and allocates EUR 31.9 million to increase teachers' salaries, achieving that the average monthly wages of teachers and pedagogical staff would be 130% of the average monthly wages of the country, based on the latest economic forecasts.
This proposal of the Ministry of Finance will be discussed at the next meeting of the Government.
Last updated: 01-07-2024
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