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Lithuania's new finance minister appointed by president

Xinhua, June 20, 2016 Adjust font size:

Lithuanian President Dalia Grybauskaite signed a decree on Monday appointing Rasa Budbergyte, former state auditor of Lithuania, as the country's new finance minister.

The newly-appointed minister will face a challenge of tackling financial populism in the country despite short period of time at the office, Grybauskaite was quoted as saying in a statement released by the presidency.

Budbergyte will serve as finance minister until Lithuania's national elections which will be held in October this year. She took over the duties from Rimantas Sadzius.

After meeting with the president on Monday, Budbergyte admitted that Lithuania must stick to the rules of financial discipline, therefore, pre-electoral populism must be resisted. She also mentioned that radical tax reform must be implemented in Lithuania as it is recommended by major international organizations.

"As international experts underline, taxes more favourable to economy growth must be introduced sooner or later; real estate and environmental taxes are on the list," Budbergyte told reporters.

In recommendations to Lithuania published in May, the European Commission encouraged the country to shift the tax burden to sources less detrimental to growth and improve tax compliance. The International Monetary Fund repeatedly called for introducing real estate and vehicle taxes in Lithuania.

Budbergyte will have to submit Lithuania's state budget for 2017 this autumn.

According to the presidency, the priorities are national defence and social security.

"In addition, particular attention must be paid to the country's commitments and recommendations of international bodies, such as the European Commission and the Organisation for Economic Cooperation and Development (OECD), regarding productivity, innovation and uptake of technologies," Lina Antanaviciene, the president's chief advisor for economic policy, was quoted as saying by ELTA news agency.

Budbergyte will assume office as of Tuesday after taking an oath in the parliament. Endit