The Lithuanian government should put forward a new package of anti-inflationary measures in autumn, but only after assessing the effectiveness of the measures adopted last spring, says Gediminas Simkus, board chairman of the Central Bank of Lithuania.
He also stressed the need to maintain fiscal discipline, to avoid adding more fuel to inflation and to use targeted measures to help the most vulnerable.
“Naturally, measures should be introduced as inflation is fairly high. But before that, the effectiveness of the previous ones and the need for new ones should be assessed,” Simkus told reporters.
In his opinion, by doing so, Lithuania would not fall out of the European context.
“But our position is very clear: we need to maintain fiscal discipline, new measures should not contribute to inflationary processes, and, most importantly, they should be targeted, they should be aimed at those who need them most – the most sensitive and vulnerable members of our society – but they should not be wide-ranging,” Simkus added.
Later this month, Prime Minister Ingrida Simonyte plans to start discussions with the opposition on additional support measures in autumn or next year to help people and businesses survive price shocks.
During its spring session, the Lithuanian parliament, Seimas, revised this year’s budget and allocated 1 billion euros to cushion the impact of rising prices on hard-pressed households. The government raised pensions, other social payouts and non-taxable income, and will also offer gas and electricity subsidies. (LRT/Business World Magazine)