Economists Warn Lithuania’s 2027 Budget Risks Rising Debt and Deficit
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4 Articles
After the government on Friday approved next year's draft state and municipal budget, in which the deficit will reach 3.8 percent of gross domestic product (GDP), Andrius Kubilius, the member of the European Commission (EC) responsible for defense and space, says that this is a cause for concern.
Economists warn Lithuania’s 2027 budget risks rising debt and deficit
Lithuania’s proposed 2027 budget will further widen the government deficit and increase public debt, while ambitious revenue targets could prove difficult to meet, economists warned Friday after the government approved the draft budget.
Next year's state budget revenue plan raises doubts due to ambitious tax collection forecasts, and the expected increasing budget deficit will lead to further growth in state debt, say economists Živilė Simonaitytė-Vasiliauskienė and Tadas Povilauskas.
The draft state budget for 2027 has been published, which will soon be taken up by the Government and then the Seimas. Not only next year, but also in 2028, a deficit is expected that is much higher than what the European Union tolerates, and the state debt will also increase, gradually approaching the permissible limit.
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