State auditors question purpose and use of Lithuania’s state reserves

Lithuania’s state reserves lack clear guidelines on how much money should be accumulated, for how long, and for what purpose, according to a report by the National Audit Office (Valstybės kontrolė).

The audit office stated on Thursday that the accumulation of reserves is not based on a clear strategic assessment. It noted that there is no determination of what size of reserves is sufficient, which risks they are intended to mitigate, or how they should be structured in the long term.

Auditors emphasised that as geopolitical, economic, demographic, and fiscal risks grow, reserves should be planned based on market analysis, with clear funding sources and usage priorities defined.

“It is important to clearly define which risks these reserves are intended to cover, what size they should be, and how they should be used in times of crisis,” said State Controller Irena Segalovičienė.

By the end of 2025, the Reserve (Stabilisation) Fund, the Social Insurance Fund (Sodra), and the Compulsory Health Insurance Fund (PSDF) had accumulated a total of €6.03 billion in reserves—24.6% or €1.19 billion more than the previous year. Of this, €4.5 billion was held in Sodra, €0.79 billion in the Reserve Fund, and €0.72 billion in the PSDF.

Last autumn, the National Audit Office recommended that the Ministry of Finance systematically review the regulation of these reserves—key tools for increasing the state’s financial resilience—and establish general principles for their management in relation to borrowing policy.

Reserves are accumulated to ensure the state’s financial stability and the ability to meet obligations during economic or other shocks.