# Lithuanian 2027 state budget and fiscal planning > Live situation record from CLSTR: https://clstr.news/situations/lithuanian-state-budget-and-fiscal-planning > Updated: 2026-10-23T05:27:44.000Z. Sources: 13. Developments: 6. Lithuania has reported significant progress in its state budget collection, reaching 66 percent of its goal with revenues totaling 14.38 billion euros. This represents an 8.7 percent increase from the previous year, driven by rises in Value Added Tax (VAT), personal income tax (PIT), and excise taxes. Finance Minister Taurimas Valys has submitted the 2027 state and Social Insurance (Sodra) budget projects to the Seimas. The proposal outlines planned expenditures of 27.88 billion euros against projected revenues of 22.16 billion euros. A central pillar is the allocation of over 4.8 billion euros to the Ministry of National Defense to maintain spending at 5 percent of GDP. To fund these security needs, Lithuania has requested a €1.06 billion loan from the European Commission under the Strengthening European Defence Capabilities (SAFE) instrument. The government sector deficit is projected to reach 3.8 percent of GDP in 2027, exceeding the EU’s 3 percent Maastricht criterion. Consequently, public debt is expected to rise from 43.8 percent of GDP in 2026 to 48.2 percent in 2027. Recent budget discussions have highlighted concerns regarding the delay of social benefits, specifically the postponement of increased child care benefits for families opting for 1.5-year parental leave due to technical reasons. Uncertainty also persists regarding funding for the Media Support Fund and cultural infrastructure. Additionally, the Ministry of Transport has proposed extending the tonnage tax scheme until 2037 to maintain the international competitiveness of shipping companies. ## Claims - The 2027 state budget deficit is projected at 3.8% of GDP. (corroborated by 3 sources) - State debt is expected to reach 48.2% of GDP. (corroborated by 3 sources) - Interest payments on debt could reach approximately 2 billion euros by 2029. (corroborated by 2 sources) - Defense spending is set at 5% of GDP, exceeding 4.8 billion euros. (single source) - Sodra's 2027 budget revenue is projected to be nearly 11.3 billion euros. (single source) - The Farmers and Greens Union proposes increasing excise duties on alcohol and tobacco. (single source) ## Timeline ### 2026-10-23: Lithuania proposes budget changes and maritime tax extensions Lithuania's new budget proposal faces scrutiny over delayed social benefits and cultural funding, while a plan to extend the maritime tonnage tax scheme until 2037 has been submitted to the Seimas. 2 sources. https://clstr.news/cluster/lithuania-proposes-budget-changes-and-maritime-tax-extensions ### 2026-10-21: Lithuania requests €1.06 billion loan from European Commission Lithuania has requested a €1.06 billion loan from the European Commission via the SAFE instrument to fund military modernization, including air defense and the formation of a land forces division. 3 sources. https://clstr.news/cluster/lithuania-requests-106-billion-loan-from-european-commission ### 2026-10-20: Lithuania proposes 2027 budget with 3.8% GDP deficit Lithuania's 2027 budget proposal features a 3.8% GDP deficit and 48.2% debt-to-GDP ratio, prioritizing defense and social spending amid warnings of rising long-term debt servicing costs. 5 sources. https://clstr.news/cluster/lithuania-presents-2027-budget-proposal-with-focus-on-defense ### 2026-10-16: Lithuania faces scrutiny over projected 3.8% budget deficit Lithuania's projected 3.8% budget deficit has raised alarms among EU officials and business leaders regarding fiscal stability and the sustainability of high defence and social spending. 2 sources. https://clstr.news/cluster/lithuania-faces-scrutiny-over-projected-38-budget-deficit ### 2026-10-16: Lithuania proposes 2027 state budget with increased road and defense spending Lithuania's 2027 budget proposal includes 4.83 billion euros for defense and 749.3 million euros for roads, despite rising projected public debt and a widening budget deficit. 3 sources. https://clstr.news/cluster/lithuania-proposes-2027-state-budget-with-increased-road-and-defense-spending ### 2026-09-22: Lithuania reaches 66% of state budget collection goal Lithuania has met nearly 66% of its budget collection plan, with revenues rising 8.7% to 14.38 billion euros, driven by increases in VAT and income tax. 2 sources. https://clstr.news/cluster/lithuania-reaches-66-of-state-budget-collection-goal --- Cite as: Lithuanian 2027 state budget and fiscal planning. CLSTR, https://clstr.news/situations/lithuanian-state-budget-and-fiscal-planning