The Seimas approved the budget for 2025-2027
Today, the Seimas approved the new Government's improved budget for 2025-2027. The provisions of the new Government Programme will be launched already next year, with a greater focus on defence funding, improvement of the country's external and internal security situation, Lithuanian roads and non-formal education of pupils. 111 members of the Seimas voted in favour of the draft budgetary plan 2025-2027, 1 - against and 16 – abstained.
The main goal of the budget for 2025-2027 is to ensure security enhancement and defence needs of the country. Taking into account the provision of the Government Programme to seek for at least 3.5 % of GDP for defence funding and the real needs dictated by military advice, while improving the budget the State borrowing limit has been increased by EUR 800 million. The budget provides for the right to borrow for national defence purposes, including military mobility and dual-use (civil-military) transport infrastructure, as well as military infrastructure necessary to ensure the host country’s support and to finance capital investments in defence industry developed in Lithuania.
The initial draft budgetary plan already envisaged that the funding of the Ministry of National Defence, including the Defence Fund, will be above EUR 2.5 billion next year. To contribute to defence funding can everyone by making a voluntary contribution or by lending to the State through acquisition of defence bonds (more information is available on the website of the Defence Fund www.gynybosfondas.lt).
While improving the budget, additional funds have been earmarked for institutions operating in the field of security, with increased funding for salaries, information technology and other needs: EUR 11.9 million was additionally allocated to the State Security Department, as compared to the budget for 2024, EUR 2.9 million to the Dignitary Protection Service, EUR 1.1 million to the Lithuanian Presidency of the Council of the EU and to ensure the security of the Lithuanian diplomatic missions, and the Special Investigation Service to increase salaries of employees of and to create new positions.
Submitting the revised budget for 2025-2027 to the Seimas, additional focus was on the Lithuanian roads delivering the programme for asphalting gravel roads prepared in the previous term of the Government and earmarking EUR 20 million for this purpose. It is estimated that for allocated funding for asphalting gravel roads next year it will be possible to initiate the modernisation works of about 25-30 km long sections in Lithuania. A total of EUR 804 million, including the aforementioned EUR 20 million, will be allocated to the Lithuanian roads next year, of which EUR 583.2 million for the Road Maintenance and Development Programme, EUR 59.1 million from the Defence Fund for military mobility and another EUR 161.2 million from the EU financial support (Connecting Europe Facility and EU Fund 2021-2027). Moreover, the improved budget has been supplemented with a provision granting the Ministry of Finance the right to borrow for the design, construction, reconstruction and repair of transit roads of national importance (bypasses) and road structures (bridges, viaducts) on roads of national importance.
In order to ensure universal non-formal education, funding for this area has been also increased. The revised budget finds the possibility of increasing the funds allocated from the State budget to the non-formal education basket by a quarter – EUR 5 million (in addition to EUR 20 million foreseen in the initial draft budgetary plan). This should encourage municipalities to allocate significantly more funds to this autonomous function of municipalities.
In order to expand the transport fare scheme, additional EUR 6.5 million will be allocated for this purpose next year (funds are foreseen as of 1 April 2025, when amendments to respective laws will be adopted). The improved budgetary plan allocates additional funds (EUR 3.5 million out of aforementioned EUR 6.5 million) for people who have reached retirement age on long-distance scheduled buses and passenger trains. The initial draft budgetary plan provides for privileges for children, accompanying persons and victims (participants in in the aftermath of Chernobyl Nuclear Power Plant accident; persons who completed compulsory military service in the Soviet Army, Afghanistan).
Next year, EUR 800.1 million will be allocated to increase the income of employees. The largest share of this amount – EUR 394 million – will go to increasing the salaries of teachers, lecturers, scientists and other pedagogical and non-academic staff. EUR 230 million will be allocated to raise the salaries of doctors, EUR 113.3 million to increase the salaries of firefighters of the Fire and Rescue Department, police officers, prosecutors, investigators, as well as the salaries of workers of cultural institutions and art workers and other public sector workers. It is estimated that, as compared to 2024, the salaries of doctors will increase on average by EUR 305 (10%) after taxes, salaries of nurses – by EUR 141 (10%), residents – by EUR 144 (10%), cultural and artistic workers – by EUR 83 (7.6%), as of 1 September 2025 the salaries of teachers will increase by EUR 142 (8.2%), and salaries of lecturers will also increase by EUR 164 (8.2%) as of September 2025.
Next year, the minimum monthly wage (MMW) will increase by 12.3% from EUR 924 to EUR 1,038. This change will mean an additional revenue increase of EUR 68.97 after taxes for the lowest income earners.
Support for the most vulnerable will receive an additional EUR487 million in funding in 2025. EUR 425 million of which will be allocated for indexation of social benefits, which includes child benefits, reimbursement of individual aid costs, social assistance benefits. The single person benefit will increase by 10.6 % up to EUR 42.29 (about 230 thousand people receive this benefit) next year. The budget also includes solutions for indexing the state pension base, small pension premiums and increasing the state pensions of injured persons, with a total budget of EUR 52 million.
Old-age pensions will increase by 12.7 % next year, allocating EUR 616 million, which will mean an average monthly increase of EUR 81 for seniors with a minimum period of service (the pension will increase from EUR 640 to EUR 721). This decision will affect 637 thousand people.
In 2025, Lithuania will invest almost EUR 3.6 billion in progress (over 3.2 billion from the EU programmes and about EUR 0.3 billion from national funds to ensure the EU programme investment in progress). The largest investment – over EUR 1.71 billion – will be allocated to green transition, EUR 263 million will be earmarked for education, EUR 206 million –for science, business and innovation, and EUR 147 million –for digital transition.
The State budget for 2025 plans EUR 17.98 billion of revenue (including EU and other international financial support funds). As compared to 2024, revenue will increase by 5.9% or EUR 1 billion.
The State budget foresees almost EUR 23.1 billion of expenditure (increasing by 12.1%, as compared to 2024, or almost EUR 2.5 billion).
Municipal revenue will also grow next year, exceeding EUR 6.67 billion (as compared to EUR 832 million in 2024, or 14.2%). Furthermore, municipalities will be able to borrow additionally up to EUR 112.6 million.
According to the budget for 2025-2027 prepared by the Ministry of Finance, the general government deficit would amount to -3 % of gross domestic product (GDP) next year, while the general government debt may account for 44.4 % of GDP at the end of 2025.