Lithuanian liberals vow to oppose 2027 budget over debt growth
Saturday 24th October 2026 on 12:30 in
Lithuania
Lithuania’s opposition Liberal Movement says it will not support the 2027 state budget, citing projected rises in public debt and deficits. LRT reported that the party announced its position on Saturday.
In a resolution adopted at a party council meeting, the Liberals said the 2027-2029 budget plan keeps the general government deficit above 3% of gross domestic product (GDP) in each of the three years, while state debt is projected to reach 54.3% of GDP by 2029.
The party said the plan would increase long-term obligations without creating sufficient conditions to finance them sustainably. It called on the government to present a credible plan to reduce public debt and the budget deficit, with specific fiscal targets, deadlines and measures.
The government’s proposed 2027 budget forecasts a general government deficit of 3.8% of GDP, above the 3% benchmark set by the Maastricht criteria. Projections show the deficit remaining above that level through 2029, while public debt reaches 54.3% of GDP.
The Liberal Movement also called for sustainable defence funding alongside strict control of other state spending. It said defence needs should not be used to justify what it described as irresponsible political promises or new permanent financial obligations, and called for defence-related borrowing to be clearly separated from borrowing for other state expenses.
The resolution also calls for a review of public spending and public-sector efficiency, a specific plan to combat the shadow economy, and a focus on economic growth, investment and job creation as the main sources of increased budget revenue.
Under the current proposal, state budget revenue in 2027 is forecast at 22.2 billion euros, including European Union funds, up 5.2% from this year. Spending is projected at 27.9 billion euros, up 1.3%. EU and other financial support is expected to total 3.2 billion euros.
Prime Minister Mindaugas Sinkevičius told 15min this week that the governing parties would probably agree on additional measures to increase next year’s revenue and reduce the projected deficit. He also said he would propose a long-term plan to bring the deficit back within the Maastricht benchmark.