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The Government Approves the Plan for the DNA of the Future Economy

Date

2020 06 11

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The Government approved Lithuania’s Plan for the DNA of the Future Economy prepared by the Ministry of Finance which will create conditions for a qualitative transformation of Lithuania’s economy, balanced development and development of innovative, high value-added business. Following the public debate, the plan for long-term investment to stimulate the economy was supplemented by new measures, mainly with human capital as well as innovation and research projects.

“At the beginning of the COVID-19 crisis we provided funding for short-term measures to stabilise the situation, and we continue to work with investments for the future. Global changes in the world economy are a great opportunity for Lithuania, which we have and can take advantage of it. Accelerating already planned investment and attracting new investment in strategically important areas allow us to recover after the pandemic and to change the DNA of our country’s economy. Therefore, we must act swiftly and efficiently,” says Minister of Finance Vilius Šapoka.

Lithuania’s Plan for the DNA of the Future Economy will be implemented from 1 July 1 2020 to 31 December 2021. The Ministry of Finance prepared the initial plan in cooperation with other ministries and the Government Strategic Analysis Centre (STRATA) Invest Lithuania. Afterwards, it was presented for the public debate with the public, social economic partners, NGOs, business, municipalities and other national institutions.

Considering all the ideas presented in the public debate, new proposals amounting to about EUR 400 million were selected and included in the DNA Plan. The ideas have been selected that have the greatest long-term impact and facilitate economic transformation with a particular focus on the real possibility to implement them by the end of 2021. Accordingly, already planned proposals have been also revised, thus the total amount has not changed. The total amount of long-term investment to be implemented by the end of 2021 will amount to about EUR 6.3 billion, of which new and additional investment will make up EUR 2.2 billion (new investment in the original proposal amounted to EUR 1.8 billion) and the remaining EUR 4.1 billion (EUR 4.5 billion in the original proposal) − accelerated already planned investment.

“The plans work only when properly implemented. In order to transform Lithuania’s Plan for the DNA of the Future Economy into real planned projects and benefits for the future of our country, a special emphasis will be made on its monitoring and effective implementation. Each month, and for some projects − on a weekly basis, we will assess the progress made and inform the public. Everyone can contribute to making the DNA of the Lithuanian economy change – we invite the public to follow and take an interest in the implementation of the Plan, " says  V. Šapoka.

Ministries will be responsible for the implementation of investment according to their fields of competence. During the implementation of investment, a two-level monitoring will be carried out, i.e. general and specific. The Ministry of Finance will provide information to the Government on the implementation of 5 investment axes provided for in the Plan and on the progress made by the ministries by the 10th of each month, as well as the proposals for accelerating the implementation of the Plan. The monthly monitoring results will be made public.

A special monitoring will be carried out by the Working Group of the Government aimed to monitor the strategic actions and projects which require special supervision. Each week, the ministries will submit the information on progress in their implementation to the Working Group of the Government.

Lithuania’s Plan for the DNA of the Future Economy identifies 5 priorities which will focus on − human capital, digital economy and business, innovation and research, economic infrastructure, climate change and energy.

EUR 757 million (new investment + EUR 115 million) will be allocated to human capital. Following the public debate, the following new proposals have been included: development of regional planning competences; financial and digital literacy (grades 1-8); implementation of joint initiatives of the European Universities; development of social innovation and creative partnerships in education, etc.

To digital economy and business – EUR 1 billion 382 million (new investment + EUR 37 million). New proposals included: green innovation laboratory (Sandbox and etc.); development of the State Data Management Information System by integrating the existing State information systems; promoting the circular economy (extended measures); creative and cultural industries and etc.

To innovation and research – EUR 989 million (new investment + EUR 185 million). New proposals included: innovation in managing PAS (public ambulance service) flows, development of individualised medicine; opening up of health data for development of innovative products and services; creation of a cluster of infectious diseases, additional funds for scientific incubators, etc.

To economic infrastructure – EUR 2 billion 56 million (new investment + EUR 23 million). A specific new proposal such as improvement of the business-friendly environment in the regions.

To climate change and energy – EUR 927 million (new investment + EUR 35 million). New proposals included: use of hydrogen for storage of energy produced from renewable energy sources (RES) and/or grid compensation and etc.