The Lithuanian government is expected to unveil a plan of measure to cushion the impact of soaring energy, food and other prices for households and businesses.
The government’s proposed 1-billion-euro measures include increasing pensions, compensation payments and other social benefits for the lowest earners, as well as raising the non-taxable income threshold.
According to sources, the plan calls for increasing the income threshold by 80 euros to 540 euros and allocating 60 million euros in state budget funds to raise old-age pensions by 5%.
The government proposes to provide around 500 million euros to the state-controlled electricity and gas supplier Ignitis. This would cover the difference between market prices and those paid by household consumers to prevent sharp hikes in electricity and gas rates for households from July.
The government plans to allocate around 1 billion euros in state budget funds for all these additional costs, with part of the money to be borrowed.
Finance Minister Gintare Skaiste said that additional state support this year would be targeted at lower-income and vulnerable groups.
Renatas Pocius, chairman of the National Energy Regulatory Council, has said that if the government takes no additional measures, electricity prices for household consumers will surge by up to 50% from July. Prices for gas used for cooking would soar by 100% and those for gas used for home heating by 200%.
The ruling coalition plans to table draft amendments to the 2022 budget to the Seimas in mid-April, with the parliament expected to pass them in May. (LRT/Business World Magazine)
