Sinkevičius says budget deficit is its biggest drawback
Thursday 22nd October 2026 on 10:15 in
Lithuania
Prime Minister Mindaugas Sinkevičius says the size of the deficit is the most disappointing feature of next year’s budget, LRT reported. He also said he was concerned about the pace of spending on national defence, but had been assured that the money would be used properly and effectively.
Speaking after meeting the Liberal Movement parliamentary group on Thursday morning, Sinkevičius said the draft budget had prompted debate, as budgets regularly attract criticism. He expects proposals to increase both spending and revenue.
The government is considering ways to raise budget revenue and optimise public administration, he said. Sinkevičius also noted that Lithuania’s economic situation is affected by global markets and geopolitical events, including the wars in Ukraine and the Middle East.
“The most disappointing element is the size of the deficit,” Sinkevičius said. He added that questions were being raised about some investments, while stressing that security itself was not in question.
Defence funds being spent too slowly
Liberal Movement leader Viktorija Čmilytė-Nielsen said defence allocations were being used too slowly. About half of the defence budget had been spent by early autumn, despite funding set at 5.38% of gross domestic product, according to figures cited in the report.
Sinkevičius said he wanted defence investment to be distributed more evenly across the year. The largest number of payments is expected in the final quarter, he said, citing an assurance from Defence Minister Robertas Kaunas that the funds would be spent properly and effectively.
The prime minister said spending should be transparent and efficient, rather than undertaken simply to use up the budget before year-end. He expects the government to report that all the funds have been used by the end of the year.
Sinkevičius also said the number of organisations responsible for procurement was among the issues worth examining, noting that the State Audit Office had commented on the matter.