Andriukaitis warns Social Democrats they have exhausted room for error

Vytenis Andriukaitis urged Lithuania’s Social Democrats not to cut pension indexation, saying the party had exhausted its margin for mistakes, LRT reported. Speaking at the party council meeting on Saturday, the party’s honorary chairman also called for protecting social benefits and placing a greater tax burden on wealthier people.

Andriukaitis criticised proposals to review the automatic indexation of spending, including pensions. He joked that party leader Vilija had nearly suffered a heart attack when she heard the idea, and said he had revived her. His remarks drew laughter and applause from party members.

He called on the party to make clear that pensions and other social benefits for families in need must not be reduced as the government considers ways to increase budget revenue or change tax breaks. He said wealthier parts of society should pay more, noting that the number of millionaires in Lithuania had risen by 8% while Social Democrats were in power.

Andriukaitis also said Lithuania remained the country with the lowest redistribution and high social exclusion. He pointed to expected increases in gas and energy prices and urged the party to address the cost of municipal services.

Seimas Speaker Juozas Olekas also called for renewed consideration of higher taxes on people with the largest incomes, saying wealthier people should contribute more to the state budget. He did not specify a particular tax measure.

Last year, the governing parties dropped a proposal to introduce a fourth personal income tax rate of 36% for top earners. Lithuania currently has three main rates: 20%, 25% and 32%. The highest applies to income exceeding 60 average salaries.

The governing majority is again considering raising some taxes to increase state revenue. The public sector deficit is expected to exceed the Maastricht Treaty’s 3% limit next year.