Liberal leader warns 3.8% deficit could burden future taxpayers

Lithuanian Liberal Movement leader Viktorija Čmilytė-Nielsen has called the projected 3.8% budget deficit for next year a “dramatic signal” that could create problems for future taxpayers, LRT reported.

“A deficit of 3.8% is a dramatic signal that sets up major problems for the future,” Čmilytė-Nielsen told BNS on Thursday. “Perhaps the Social Democrats will no longer have to deal with them, but taxpayers will.”

Her comments followed Prime Minister Mindaugas Sinkevičius’s statement that the public-sector deficit is expected to reach about 3.8% of gross domestic product next year. Preliminary revenue, including EU support, is forecast at €22.04 billion, while spending is projected at €27.85 billion.

Lithuania plans to allocate €4.8 billion to defence next year, or slightly more than 5% of GDP. Čmilytė-Nielsen said she was not surprised by the level of defence funding, but described remaining in the “5% club” as “minimally good news.”

She criticised the government’s approach to long-term public finances, saying political decisions should look beyond a single term. “The principle of living for today and not thinking about what will happen in a couple of years is flawed in politics, because the bill always comes, and it comes to the people who pay taxes,” she said.

Defence spending is set to rise by €36 million compared with this year. However, its share of GDP is expected to fall from 5.38% this year to 5% in 2027 as the economy grows.