# Lithuanian healthcare funding and budget management > Live situation record from CLSTR: https://clstr.news/situations/lithuanian-healthcare-funding-and-budget-management > Updated: 2026-09-06T12:14:00.000Z. Sources: 3. Developments: 2. Lithuania is addressing significant healthcare funding deficits through budget reallocation and fiscal management. In the first half of 2026, healthcare institutions incurred 85 million euros in over-budget services, with stationary active treatment accounting for approximately 70 percent of these costs. To mitigate the risk of straining medical institutions and impacting accessibility, the government has decided to use budget reserves to cover these costs. In response to these deficits, the Ministry of Health has been instructed to audit institutions with high levels of over-budget services and initiate legislative changes. These reforms include new contract procedures for private institutions starting in 2027, where most over-budget services will no longer be reimbursed. Broadly, the Lithuanian government is utilizing state budget reallocation mechanisms to adjust spending in response to changing economic conditions. While the Ministry of Finance oversees these shifts to manage sectors like healthcare and defense, business representatives continue to seek fiscal stability and continuity amidst concerns regarding budget collection and demographic funding requirements. ## Timeline ### 2026-09-06: Lithuania manages budget reallocation and fiscal stability Lithuania's budget reallocation process allows the government to adjust spending on schools, hospitals, and social services in response to economic shifts and political priorities. 2 sources. https://clstr.news/cluster/lithuania-manages-budget-reallocation-and-fiscal-stability ### 2026-08-26: Lithuania to use budget reserves to cover 85 million euros in over-budget healthcare services Lithuanian medical institutions provided 85 million euros in over-budget services during the first half of the year, prompting government audits and planned legislative changes to healthcare funding. 2 sources. https://clstr.news/cluster/lithuania-to-use-budget-reserves-to-cover-85-million-euros-in-over-budget-healthcare-services --- Cite as: Lithuanian healthcare funding and budget management. CLSTR, https://clstr.news/situations/lithuanian-healthcare-funding-and-budget-management