Sinkevičius says Democrats will not back Lithuania’s 2027 budget

Democratic Union For Lithuania leader Virginijus Sinkevičius said his party would not support the 2027 state budget proposal currently before parliament, LRT reported. He said the Finance Ministry must do more to reduce the projected deficit and present a detailed plan for balancing public finances.

“As things stand, no,” Sinkevičius told reporters on Wednesday when asked whether the Democrats would vote for the proposal. He said the Finance Ministry had not yet met the conditions needed for his party’s support.

“The Finance Ministry simply has to do its job properly: make every effort to balance the budget, reduce the deficit as much as possible and provide a detailed plan for what next year’s budget will look like,” he said.

Sinkevičius said he planned to discuss the budget, its deficit and the Democrats’ proposed changes at a meeting with President Gitanas Nausėda. He said the president should be informed of differing positions among coalition partners and that the meeting was not intended to pressure the government.

The discussions would also cover the Democrats’ proposed family policy package and possible pay rises for statutory officers. Sinkevičius noted that the president had said he wanted the budget deficit to remain below 3% of gross domestic product (GDP).

Finance Minister Taurimas Valys has presented parliament with a 2027 budget proposal that forecasts a general government deficit of 3.8% of GDP and public debt of 48.2% of GDP. The president has criticised the government for not presenting a clear plan to reduce the deficit, which is expected to exceed the EU Maastricht criteria limit of 3% of GDP. The criteria also set a public debt limit of 60% of GDP.

The proposal allocates more than 4.8 billion euros, or 5% of GDP, to defence. It also plans increases to pensions, the minimum monthly wage, social benefits and public sector salaries. Budget revenue is forecast at 22.2 billion euros in 2027, with expenditure of 27.9 billion euros. Parliament is scheduled to hold the first reading on November 19 and the second on December 1.