Seimas approves the State budget for 2026-2028
Today, the Seimas approved the State budget for 2026-2028 prepared by the Ministry of Finance, which focuses on three priorities: personal income and social security, defence and infrastructure. 80 members of the Seimas voted in favour of the budget for 2026-2028, 39 against and 7 abstained.
“This budget is balanced to meet top priorities of the population – we raise salaries for pedagogical staff, academia and statutory officials, and invest in social security, infrastructure and culture. At the same time, we are not only providing unprecedented funding for defence but also committing to maintaining it in the long term. The budget reflects the will of the governing coalition – security and deterrence must be financed without compromise, and national defence remains our top priority, as today's geopolitical reality requires decisions with real power rather than symbolic ones," Minister of Finance Kristupas Vaitiekūnas notes.
According to the Minister, "Our goal is for the 2026 budget to be sustainable, responsible and focused on real improvements in quality of life of the population. While fiscal space is limited, we make decisions that bring the greatest returns to society today and in the future, and every additional euro goes where it creates the most value.”
Personal income and social security
The 2026 budget provides an additional EUR 1.06 billion for personal income and social security. Of this amount, EUR 554.2 million will be allocated to increasing the income of the employed.
EUR 250.1 million will be allocated to raise the salaries of pedagogical staff, academic and non-academic staff of research and higher education institutions, sports coaches, EUR 148 million to medical staff, EUR 39.2 million to statutory officials (Fire and Rescue Department, Police Department, State Border Guard Service, Prison Service, Probation Service, Customs Department), EUR 15 million to cultural institutions and arts workers, EUR 10.6 million to medical residents, EUR 4 million to staff of the Office of the Seimas and EUR 1 million to staff of the National Audit Office.
It is estimated that, compared to 2025, teachers' net salaries will grow on average by EUR 157 next year, those of academic staff of higher education institutions by EUR 177, and coaches by EUR 128. This means that the salaries of all these employees will increase by an average of +8.41%. The total payroll of the statutory services will increase by +7%.
Compared to 2025, doctors’ net salaries will increase on average by EUR 103 (3%), nurses – by EUR 127 (8%), medical residents by EUR 313 (12.6%) and cultural and arts workers by EUR 62 (5%).
The minimum monthly wages (MMW) will rise by 11.1% next year – from EUR 1038 to EUR 1153. This change will result in an additional increase of EUR 69.58 in net income of the individuals earning MMW.
At the same time, the baseline is being increased next year to ensure public sector wage growth and to offset the impact of inflation. For this purpose, the State budget provides for almost EUR 29.1 million each year.
With effect from 1 January 2026, the procedure for indexation of the basic amounts of social benefits will be modified to ensure that they reflect changes in prices and average wages, leading to a faster indexation of benefits linked to the basic amounts. Due to the indexation of the basic amounts of social benefits, additional funding of EUR 121.8 million is allocated in the State budget for increased scholarships, child benefits, benefits, compensation for the costs of providing individual aid to persons with disabilities and other benefits.
This means that from 1 June 2026, the one-off child allowance will increase by EUR 266 (35%) and the child support allowance by EUR 59 (47%). The range of beneficiaries of the childcare allowance is also broadened to cover all persons bringing up children (not only those in education or training) who are not entitled to the childcare allowance from Sodra.
The indexation of the basic social benefit will result in an increase of 5.7% in child benefit, scholarships, free lunch for pupils, of which child money will increase by EUR 7 (from EUR 122.5 to EUR 129.5).
Old-age pensions will be increased by 12% next year, with a budget of EUR 388.4 million. The average old-age pension will increase by EUR 80 next year (from EUR 670 to EUR 750) for those with a minimum period of service – by EUR 90 (from EUR 720 to EUR 810). The decision will affect 640,000 persons.
Defence
As part of the implementation of the Government Programme and the decision of the State Defence Council to allocate at least 5 % of gross domestic product (GDP) to defence in 2026-2030, funding of the Ministry of National Defence together with the Defence Fund will amount to EUR 4.8 billion or 5.38 % of gross domestic product (GDP) in 2026. Of this amount, EUR 700.3 million will be the funds of the State Defence Fund.
Defence funding will grow by almost EUR 1.6 billion next year, more than any other area. Defence spending will account for almost 14% of total budget expenditure in 2026 (excluding EU and Next Generation Lithuania loan funds), and defence funding will rank second in the overall spending structure after social security.
Increased funding is planned for strengthening national defence, modernization of the Lithuanian Armed Forces, acquisition of new and modern weapons, development of military infrastructure (construction of polygons, barracks). The biggest priorities in the near future are the establishment of the National Division and the deployment of the German Brigade in Lithuania by 2027.
Infrastructure
In 2026, EUR 815.5 million will be allocated to the national infrastructure. Of this amount, EUR 436.6 million is earmarked for the Road Maintenance and Development Programme (RMDP), EUR 178.8 million for the State Road Fund and EUR 200.1 million from EU financial assistance.
As the RMDP decreases, the additional EUR 48 million in next year’s budget has kept funding for municipal roads from the RMDP and will amount to EUR 206.4 million in 2026.
The amendment to the 2021-2027 Investment Programme, which is currently being prepared, provides for EUR 99.6 million of European Union (EU) funding for military mobility activities through reallocations within the programme and additional funding. Also, from 2027 onwards, revenue from the electronic road toll (E-tolling) is expected (EUR 200 million each in 2027 and 2028), which is EUR 126 million more than planned to be collected from the road user charge in 2026.
Other purposes
In accordance with the adopted amendment to the Law on Lithuanian National Radio and Television (LRT), the reduced appropriations of EUR 8.5 million to LRT will be allocated to the cultural sector: M. K. Čiurlionis's anniversary exhibition in Tokyo to cover transportation and insurance costs (EUR 235 000 in 2026), Lithuanian-German cultural exchange programme (EUR 200 000 in 2026), and other cultural purposes.
An additional EUR 1.2 million is allocated next year to the Chancellery of the Seimas to prepare for the Presidency of the Council of the EU and the TV programme "Seimas Live" (broadcasting via digital terrestrial network).
Revenue and expenditure are increasing
In 2026 - 2028, the State budget (including EU funds) provides revenue of EUR 21.1 billion. Compared to 2025, revenue is growing by 17.2% or EUR 3.1 billion. Expenditure in the State budget is estimated at EUR 27.5 billion (an increase of 19.1% compared to 2025, or more than EUR 4.4 billion).
The largest share of budget expenditure (excluding EU funds) is allocated to social security next year, with more than EUR 12.6 billion (an additional almost EUR 1.1 billion compared to 2025). Health will receive almost EUR 4.8 billion (additional EUR 414 million), education – EUR 4.8 billion (additional EUR 517 million), defence – EUR 4.9 billion (additional EUR 1.6 billion), public order and public protection – EUR 1 billion (additional EUR 23 million), recreation, culture and religion – EUR 947 million (additional EUR 43 million), housing and utility – EUR 741 million (additional EUR 63 million), environmental protection – EUR 515 million (additional EUR 76 million), general public services – EUR 3 billion (additional EUR 461 million), economy – EUR 2.1 billion (additional EUR 47 million).
Municipal revenue is also growing significantly, amounting to almost EUR 7.5 billion (EUR 807.5 million or 12.1% increase compared to 2025, of which autonomous municipal revenue alone will grow by EUR 480 million or 11.5%).
EU investment in Lithuania is accelerating, with record amounts of EU funds planned for 2026. Next year, EUR 1,247 million is planned to come from the 2021-2027 Investment Programme and EUR 1 643 million from the plan “Next Generation Lithuania”.
Dynamics of the balance
The State budget for 2026-2028 prepared by the Ministry of Finance projects a general government deficit of -2.8% of GDP in 2026, and without taking into account the statistical correction of the acquisition of military equipment, weapons and stockpiles -5 % of GDP. General government debt will be 45.4% of GDP next year.
Last updated: 13-01-2026
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