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Lithuanian 2027 state budget and fiscal planning

Updated 5 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-22 07:50 UTC → 2026-10-24 12:18 UTC · added removed

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, supporting the creation of national divisions, weaponry procurement, and infrastructure development. 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. Once approved, this request—combined with a previous advance—will bring total SAFE funding to €1.86 billion, representing 29 percent of the €6.375 billion total credit allocated to the country. The funds are designated for combat systems, the Baltic defense line, and air defense, utilizing a 45-year loan term with a 10-year grace period. 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. Opposition members Recent budget discussions have raised highlighted concerns regarding rising debt, warning that interest payments could reach approximately 2 billion euros by 2029. In response, the Farmers 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 Greens Union cultural infrastructure. Additionally, the Ministry of Transport has proposed increasing excise duties on alcohol and tobacco. extending the tonnage tax scheme until 2037 to maintain the international competitiveness of shipping companies.

Versions

  1. 2026-10-24 12:18 UTC Lithuanian 2027 state budget and fiscal planning
  2. 2026-10-22 07:50 UTC Lithuanian 2027 state budget and fiscal planning
  3. 2026-10-21 17:16 UTC Lithuanian 2027 state budget and fiscal planning
  4. 2026-10-20 09:05 UTC Lithuanian 2027 state budget and fiscal planning
  5. 2026-10-16 13:37 UTC Lithuanian state budget and fiscal planning
  6. 2026-10-16 13:05 UTC Lithuanian state budget and fiscal planning

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