Lithuania proposes 2027 state budget with increased road and defense spending

The Lithuanian government has proposed a 2027 state budget featuring significant allocations for national security and infrastructure. Total planned expenditures are set at 27.88 billion euros against projected revenues of 22.16 billion euros. The Ministry of National Defense is slated to receive 4.83 billion euros to maintain defense spending at 5 percent of GDP.

In the transport sector, 749.3 million euros are earmarked for roads. While overall funding decreases due to reduced European Union support, national funding for roads will increase by nearly 62 million euros. This growth is supported by the State Road Fund and the upcoming ‘Via Toll’ electronic road toll system, which is expected to collect approximately 110 million euros.

The Lithuanian Confederation of Industrialists (LPK) has commented on the draft, noting that while defense and social commitments are priorities, the state must ensure economic productivity to manage rising debt. Projections indicate the government sector deficit could reach 3.8 percent of GDP in 2027, with public debt expected to rise from 43.8 percent of GDP in 2026 to 48.2 percent in 2027.