Posts tagged as budget

Lithuania’s budget proposal stimulates growth, but may overheat economy

Tuesday, October 20, 2020

Lithuania’s draft budget for 2021, planned with a general government deficit of 5-percent GDP, has been presented to the parliament. Economists say the proposed 2021 budget gives Lithuania an opportunity to transform its economy and ensure future growth. However, the budget proposal also poses a risk of overheating the economy – with demand outstripping supply – that could lead to higher inflation and decreasing exports. On Tuesday, Lithuanian Finance Minister…

Lithuanian defence budget to stay above NATO 2-percent threshold

Thursday, October 15, 2020

Lithuania’s defence budget next year should exceed the two-percent of GDP threshold called for by NATO, according to the country’s Defence Ministry. On Wednesday, the government presented the budget bill for 2021 that included the same financing for the country’s defence system as this year – 1.17 billion euros. Lithuania would therefore spend between 2.01 and 2.09 percent of GDP on defence. In 2020, Lithuania was one of nine NATO…

2021 budget plan delivered to Saeima

Wednesday, October 14, 2020

Finance Minister Jānis Reirs (New Unity) handed in his budget plans for 2021 to the Saeima October 14. As is customary, the proposed budget was contained in an old leather briefcase. The Cabinet of Ministers on Tuesday approved Latvia’s draft budget for 2021, projecting a budget deficit of EUR 1.2 billion, or 3.9 percent of GDP. According to the draft law on Latvia’s 2021 budget, consolidated budget revenue is planned…

Budget watchdog urges government to curb economic stimuli

Thursday, October 8, 2020

The Fiscal Discipline Council (FDP) called on the government to limit the implementation of additional economic stimulus measures, according to it latest crisis monitoring report published October 7. In the report, the Council indicated that Latvia’s priority in mitigating the effects of COVID-19 is rapid and efficient use of the European Recovery and Stability Mechanism over the next two years, providing a unique opportunity not only to mitigate the effects of…

Tallinn submits supplementary budget to city council

Wednesday, October 7, 2020

Tallinn city government will submit a supplementary budget to be discussed and approved by the city council; the volume of the planned supplementary budget totals close to €53.4 million. The budget will be positive rather than negative as forecast in the spring. The updated total of the 2020 Tallinn city budget is €862.3 million. Mayor of Tallinn Mihhail Kolvart said at a press conference on Wednesday that despite the emergency…

Estonia wants to avoid Greece situation

Wednesday, September 30, 2020

University of Tartu economics professor and chair of the budget council Raul Eamets says that while a budget deficit was a normal thing during the peak of the coronavirus pandemic, that for next year and the year after may be smaller, even though more difficult times may come, to avoid a situation where the cost of running the state is covered via loan money long-term. “We may [otherwise] find ourselves…

Budget position improvement starts in 2022 in Estonia

Wednesday, September 30, 2020

With its state budget for 2021 agreed on Tuesday, the government will start to improve its structural position in the state budget from the following year, 2022, Prime Minister Jüri Ratas (Center) said Tuesday evening. Ratas also said that living on credit cannot go on indefinitely, speaking to ETV news show “Aktuaalne kaamera” Tuesday night, in an interview which follows. You said via a government press release that you have drawn…

Government agrees on 2021 budget in Latvia

Tuesday, September 22, 2020

Government parties on Monday, September 21, agreed on the framework for the country’s next year’s budget, said Prime Minister Krišjānis Kariņš (“New Unity”). Kariņš said that negotiations over the country’s next year’s budget had been difficult, but “very interesting.” The country’s budget for next year provides for a number of things: Ilze Indriksone (National Alliance) said that the coalition also supported the preservation of the reduced value added tax (VAT) rate for…

EC approves Latvia’s aid program for exporting companies

Tuesday, August 4, 2020

The European Commission has approved a Latvian aid program with a budget of around €51 million to support exporting companies in the COVID-19 crisis, the EC informed the media in a statement on August 3. The program was approved under the temporary framework for State aid measures. This public support, which will be granted in the form of direct grants, will cover up to 25% of the compulsory social security…

Finance minister urges austerity as Lithuania’s debt risks breaking EU rules

Wednesday, July 29, 2020

Lithuania’s Finance Minister Vilius Šapoka says the government should not raise its 2021 spending for boosting consumption, as the country is close to breaking eurozone rules on government debt. “[The Finance Ministry] will propose a safe government budget,” Šapoka told the parliamentary Budget and Finance Committee, which is working on next year’s government spending bill, on Wednesday. “What does ‘safe’ means? Raising spending for consumption would not be safe.” He…