On October 7, the Lithuanian government approved the 2023 state budget bill and it would be put before the country’s parliament, the Seimas, this week.
State budget revenue will grow by 3.4% next year, to 15.62 billion euros, including EU funds. Expenditure is projected to go up by 6.1%, to 18.61 billion euros.
The projected state budget deficit stands at 4.9% and the public debt will rise to 43% of GDP.
The state plans to spend 1.930 billion euros to mitigate the impact of energy price increases on households and businesses.
The state vows to compensate for the public electricity price for households to make sure it will not exceed 28 cents per KWh in the first half of the year and 33 cents in the second half.
Businesses will receive state compensation for electricity prices exceeding 24 cents per KWh in the last quarter of this year and 28 cents in the first quarter of next year.
Also, businesses with energy costs amounting to at least 10% of their expenditure will have their tax suspended until late April.
Moreover, 1.552 billion euros will be spent on raising residential income over the next year, 275 million euros will be spent on security, and the state will spend more than 2.9 billion euros on investments in various areas, using different funding sources. (LRT/Business World Magazine)
