Coalition considers delaying family package measures

The ruling coalition is considering postponing some measures in its family support package next year as it weighs tax changes to reduce state debt and the budget deficit, LRT reported.

The Democrats and Farmers have proposed ways to raise more revenue but say they are still waiting for concrete calculations from the finance minister. The Democrats want figures on possible increases to taxes on gambling and sugar, while the Farmers have proposed raising alcohol and tobacco excise duties.

Virginijus Sinkevičius, the Democrats’ leader, criticised the Finance Ministry before the first special meeting of the coalition’s working group, saying the minister should admit if he could not get the ministry to produce the necessary calculations.

Algirdas Sysas, chair of the Seimas Budget and Finance Committee, warned that higher tobacco taxes could encourage smuggling. He pointed to tobacco found in shipments carried by hot-air balloons, seized by customs officers and discovered on buses travelling from Belarus to Lithuania.

The finance minister said increases to tobacco and alcohol excise duties needed careful consideration to ensure Lithuania remained competitive with neighbouring countries, but said the proposals were being taken seriously.

Coalition partners are discussing whether to drop or postpone some family package measures, prioritising higher childcare benefits and housing support. Sinkevičius said those two measures were fundamental, while other proposals could be discussed. Ligita Girskienė, a member of the Seimas faction of the LVŽS and KŠS, also called the childcare benefit increase the measure offering families the greatest security. She said the proposed free meals for primary school pupils needed further consideration, noting that children do not always eat at school.

Funding for higher childcare benefits is not yet included in next year’s budget. Prime Minister Mindaugas Sinkevičius said the coalition had to finalise which measures it would support, but that the increase would take effect on July 1 and amount to four average wages.

About 150 million euros is currently planned for next year for first-home purchases by vulnerable families, activity vouchers for primary school pupils and children that could cover camps or childcare services, and higher pension guarantees for parents caring for children.

Ingrida Šimonytė, a member of the Homeland Union-Lithuanian Christian Democrats’ Seimas faction, said universal vouchers were unaffordable for a country with one of the EU’s smallest budgets. Eugenijus Gentvilas, a member of the Liberal Movement faction, called the family package too generous and said public funds should not be spent at the expense of future generations.

Social Security and Labour Minister Inga Ruginienė opposed dropping measures, but said their implementation could be rescheduled. If coalition partners want higher childcare benefits from July 1 next year, one measure may have to be moved to 2028, she said.