Page 65 - CE Outlook Regions 2023

Government debt in Lithuania increased to €24819.50 million in October
2022.

Brussels has said that Lithuania’s 2023 budget is not in line with the EU
Commission’s recommendations, which call for a neutral fiscal policy
and limited growth in spending. The country will now be subject to an
in-depth review.

4.6 Budget and debt - Slovakia

The budget for 2023 was subject to domestic political struggles and was
approved by the caretaker cabinet just before the end of the year after a
political agreement that involved the dismissal of the then finance
minister Igor Matovic.

The budget was eventually approved with a deficit of €8.3bn or 6.4% of
GDP. In 2022 the deficit was close to 5% of GDP. Revenues in 2023
should be €26.7bn and investments €35bn. There is an investment cap
of €41.3bn which Slovakia imposed to comply with the EC’s
expectations.

It was described as “a historic budget” or as a “budget of assistance to
people” by cabinet officials because it will see the highest salary rise for
teachers (up to 23.2%), 17.7% for other state officials, a rise in pensions
(11.8%), and it includes aid package to families with kids of more than
€1.1bn and a €500mn rise of salaries for medical workers.

Another €3.4bn is allocated in compensation for soaring energy prices.
The budget also includes taxes on Russian crude oil, gas transportation,
gambling, and alcohol.

In its winter forecast, the NBS expects a worsening of conditions in
public finance with a projected deficit of 5.9% of GDP in 2023. Even
without further government measures, the NBS forecast puts the public
debt at around 60% of GDP in 2023 and 2024. The finance ministry
expects a lowering of public debt to 59.4% of GDP in 2022 from last
year’s 62.2%, and below 58% in 2023.

65 CE Outlook 2023 www.intellinews.com