Lithuania’s budget for 2023 was planned with 3% of GDP allocated to defence spending. However, the plans had to be adjusted due to the energy crisis, Defence Minister Arvydas Anusauskas said on October 13.
“We had plans for 3%. That plan has not disappeared anywhere, but after that plan was drawn up, the energy crisis hit, which led to rising borrowing levels. This ruins these plans,” the minister said.
“I’m not giving up my 3% target, but it is a government decision and part of responsible financial management. I’m a member of the Cabinet, and we take decisions collectively,” he added.
President Gitanas Nauseda has repeatedly suggested increasing Lithuania’s defence spending to 3% of GDP next year.
However, Finance Minister Gintare Skaiste argues that doing so would bring Lithuania’s budget deficit above 5% of GDP, which would significantly increase its borrowing costs.
Last week, the government proposed to allocate more than 1.77 billion euros, or 2.52% of next year’s projected GDP, to the national defence.
“I do hope that when the energy crisis is over, and resources are freed up, we will continue to move toward 3%,” Anusauskas said. (LRT/Business World Magazine)