Lithuanian national budget projections

Prime Minister Mindaugas Sinkevičius has outlined a new budget for Lithuania that prioritizes increased funding for national defense and social welfare.

Defense spending is projected to rise by 36 million euros, focusing on air defense, a national division, and the German brigade. While official primary defense spending is cited at 5.38% of GDP, total investments including broader security measures are expected to reach approximately 7% of GDP, accounting for nearly 29% of the total state budget. During parliamentary discussions, MP Karolis Neimantas highlighted the distinction between these figures, noting that the higher percentage includes wider security investments. The Prime Minister maintained that these levels are necessary to address ongoing regional risks and to enhance capabilities such as air defense and drone mitigation.

On the social side, the budget includes a ‘Family Package’ of approximately 150 million euros for demographic support, such as childcare and housing assistance, alongside a planned 10.4 percent increase in average old-age pensions. The government also intends to allocate 980 million euros for socially vulnerable individuals and 450 million euros for wage increases. The Prime Minister noted that the government sector deficit is expected to reach 3.8 percent of GDP, which exceeds the Maastricht criteria of 3 percent.