2012-04-12 10:11

In convergence program update, Lithuania hopes to eliminate fiscal deficit by 2015

Lithuania intends to continue measures to consolidate its public finances and will seek to ensure that the fiscal deficit does not exceed 3 percent of GDP in 2012 and declines by 1 percentage point each subsequent year to be totally eliminated in 2015, in accordance with Lithuania’s 2012 draft convergence program, which has been updated by the Finance Ministry and will be submitted to the government to consider.
Pinigai
Pinigai / 15min.lt nuotr.

The medium-term objective (MTO) set out in the draft is a structural surplus of 0.5 percent of GDP.

In 2013 the fiscal deficit is planned to be reduced to 2 percent of GDP, and in 2014 – to 1 percent of GDP.

The authorities will seek to enhance confidence in the currency board mechanism and price stability, to ensure that the public debt does not exceed 60 percent of GDP in several decades and does not place additional burden on future taxpayer generations, and to secure best possible implementation of social obligations to future pensioners in the long-term.

As projected in the draft, the public debt will reach 40.1 percent of GDP at the end of this year before going down to 38.5 percent at the end of 2013, to 36.6 percent at the end of 2014, and to 34.8 percent at the end of 2015.

Convergence programs are published by the EU Member States that have not adopted the euro yet. The programs that are updated each year provide legal commitments to implement the reforms required for financial stability in the nearest three-year period.

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