Government approved the 2027-2029 State Budget Preparation Plan
Today, the Government approved the plan for the preparation of the draft law on the approval of the 2027-2029 budget. Budget negotiations are planned for summer, allowing ministries and other appropriation managers more time to prepare programme estimates and to plan most of the work ahead.
This year the three-year budget for 2027-2029 will be prepared for the third time already. As the revenue and expenditure for the first two years (2027 and 2028) have already been approved by the Seimas with the State budget for 2026-2028, these budgets should be adjusted minimally, e.g. ministries and other appropriation managers should in principle provide needs for 2027-2028 only for the purpose of reallocating funds between their own measures or between appropriation managers, as well as for changes in appropriations that are indexed, e.g. changes in the levels of social benefits, minimum monthly wages, etc. In the meantime, the needs for 2029 will be planned against the 2028 budget.
"Three-year budgets provide more stability in public finance planning, but they can be adjusted if necessary. Expenditure limits should be changed for each year only in exceptional cases and within the limits set for the growth of net expenditure, for example, in the event of a declaration of an emergency, changes in budget revenue, economic forecasts or plans to receive additional international support, etc. In this way, revenue and expenditure for the first two years could be adjusted and the institutions will plan for the third year according to new needs", Minister of Finance Kristupas Vaitiekūnas states.
Budget negotiations will take place in two stages, as is the case every year. The funding needs of the institutions will be discussed first, and, in a second step, the financing of additional measures and new initiatives will be considered.
The Ministry of Finance submits a draft budget approval law for a given year to the Government for approval on an annual basis. It provides for specific work for the institutions involved in the preparation of the budget: what data and information they have to produce and when and to whom.
The 2027-2029 State budget preparation plan envisages that:
- By 4 May, the Ministry of Finance collects the financing needs of the institutions.
- From 25 May to 12 June, meetings are planned between representatives of the Ministry of Finance, the Government and the relevant ministries or representatives of other appropriation managers on the planned appropriations and the results to be achieved: assess the results achieved by the institutions in previous years, the appropriations used for progress and follow-up activities and the implementation of the recommendations of the systematic spending review, discuss proposals for ensuring the financing of the needs of the functions and activities carried out.
- From 15 June to 3 July, meetings between the Prime Minister, the Minister of Finance and the relevant Minister are planned on the planned appropriations and the intended results for the years 2027-2029 in the respective areas of state activity and the borrowing needs of central government entities. During these meetings, the budget indicators are adjusted and the financing of additional measures for the year 2029 is decided.
- By 10 July, the Ministry of Finance notifies the institutions of the maximum expenditure limits to be allocated for the years 2027 to 2029, taking into account the decisions of the previous meetings on the allocation of funds calculated for each 3 years.
- By 28 August, the institutions draw up draft estimates of the State budget programmes for the years 2027 to 2029 with preliminary calculations (adjust the first two years, if necessary, and submit detailed third years), within the limits of the maximum State budget appropriations announced at the meetings on appropriations.
- By 11 September, the Ministry of Finance updates the economic development scenario and government finance projections for 2026-2029. Following the update of the economic development scenario, if necessary to revise the draft State budget for 2027-2029, the Ministry of Finance notifies the ministries of the revised maximum expenditure limits for 2027-2029 within 10 working days.
- By 15 October, the Ministry of Finance prepares and submits to the Government the draft law approving the budget for the years 2027 to 2029.
Last updated: 30-03-2026
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