As the Lithuanian parliament, Seimas, starts deliberating the 2023 government spending bill, Finance Minister Gintare Skaiste says the primary focus is on supporting households and business in shouldering high energy prices.
“The government is presenting the budget bill today, and we see it as a kind of shield to protect the population in this uncertain period when energy prices are really high. So the first priority is to solve the energy situation, to provide compensation for both businesses and household in the current period, and to invest in renewable energy and additional electricity generation in the long term,” Skaiste told reporters at the Seimas on October 11, adding that preserving households’ purchasing power was another budget priority.
“One-and-a-half billion euros are also earmarked for raising incomes to preserve people’s purchasing power,” the minister said.
As MPs proposed various forms of tax relief for individual business groups, the finance minister said the most important thing was to help all businesses overcome the energy challenges.
“The energy crisis is probably equally difficult for all businesses, which is why a package of 2.5 billion euros has been proposed to address the business situation,” Skaiste said.
The 2023 budget bill is based on the Finance Ministry’s September forecasts that Lithuania’s GDP will grow by 1.6% next year and that average annual inflation will fall to 6%, Skaiste points out.
“Since the uncertainty is high and there are many risks, they are related to the actions of other actors, what the war in Ukraine will look like, what the level of escalation will be, how long it will last. It’s also got to do with Russia’s actions in the energy sector, limiting gas supplies and thus affecting the price of gas on international markets,” the minister said.
“Also, decisions that are more broadly based, let’s say, OPEC countries’ decision on oil production and market supply,” she added.
The budget bill was presented earlier than usual this year and is also scheduled to be adopted earlier, in November instead of mid-December.
The government approved the 2023 state budget bill on October 7.
The Seimas will hold its first budget hearing on November 10, after which it will go back to the government with proposed adjustments. The second parliamentary hearing will be held on November 17. The budget adoption is scheduled for November 22, but the date has not been officially confirmed yet. (LRT/Business World Magazine)
