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Roundup: Lithuanian parliament to vote on optimistic 2016 budget

Xinhua, December 9, 2015 Adjust font size:

Lithuanian economy will grow more than 3 percent next year and the country's budget based on this growth figure will be implemented, Rimantas Sadzius, the Baltic country's minister of finance, said on Tuesday.

Sadzius presented the draft of Lithuania's 2016 budget at the Seimas, the Lithuanian parliament, on Tuesday.

The government paid attention to European Commission, National Audit Office of Lithuania and the country's central bank's remarks in respect of next year's revenue and spending plan, as well as fiscal discipline, Sadzius said, local website vz.lt reported.

"We will collect as much as planned, as regards both personal income tax and added value tax; we will collect even more," Sadzius was quoted as saying by vz.lt.

The minister also informed that parliamentary committees and individual members of parliament have demanded extra budget funding which amounts to 800 million euros (872 million U.S. dollars).

"Of course, the state's potential does not let to meet all these proposals; however, some of them were taken into account," Sadzius noted.

Among others, spending will be increased for education and justice.

Based on the current draft project, the country's revenues will amount to 8.046 billion euros, while spending will reach 8.686 billion euros.

"I am tired of sniveling about tensed, unreal and unreachable budgets, since our budgets, as facts show, are being implemented successfully," the minister added.

Sadzius believes Lithuania's economy will grow by 3.2 percent in 2016. In the case of slower growth, the budget goals would be achieved as well, he said. European Commission forecasts 2.9 percent GDP growth for Lithuania next year.

Parliamentary opposition expressed its doubts about Sadzius' optimism in terms of next year's budget.

"I hope that period of irresponsible budget policy will end soon; however, we do not see that in government's draft budget project," said Andrius Kubilius, leader of parliamentary opposition and former prime minister.

According to him, the budget draft presented by the government is not enough ambitious and disregards observations made by the European Commission and National Audit Office of Lithuania, in terms of decreasing budget deficit and fiscal consolidation.

"They urge to decrease public deficit to 0.5 percent next year, while our government plans more than 1 percent," Kubilius said.

The government expects public budget deficit to stand at 1.2 percent next year.

While speaking at the parliament, Vitas Vasiliauskas, the chairman of Lithuanian central bank, also expressed his discontent with the government's postponed plans to achieve a balanced budget.

The parliament plans to vote on budget 2016 this Thursday. Endit