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Public investment cuts threaten to hit Lithuanian builders and IT companies hard

Remontuojami I parlamento rūmai
Irmanto Gelūno / 15min nuotr. / Remontuojami I parlamento rūmai
Šaltinis: BNS
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Cuts in public investment program planned by the new Lithuanian government, which is looking for resources to raise minimum monthly wages starting in January, may hit the construction and IT companies the hardest, the Verslo Žinios business daily reports.

Cuts may affect plans by the outgoing Andrius Kubilius-led government to increase the social housing fund next year. The outgoing Cabinet intended to allocate 16.7 million litas for its expansion next year, out of 50.1 million litas earmarked for 2013-2015. The same draft public investment program earmarked 1.3 million litas for the renovation of premises of Panevėžys Regional Prosecutor’s Office.

The amount of 0.76 million litas initially earmarked for the Palace of the Grand Dukes of Lithuania for 2013 may be reduced as well.

The draft 2013 public investment program also included new IT projects in certain ministries and institutions, which mostly dealt with the upgrade of various data systems and websites.

Many large IT projects were planned to be implemented in the areas supervised by the Agriculture Ministry. In particular, the draft earmarked 7 million litas for the upgrade of IT systems of the National Paying Agency in 2013. IT companies may also lose 3.2 million litas of orders from the Finance Ministry.

BNS
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