Page 26 - Central & Southeast Outlook 2020

Budget revenues will be supported by a number of tax increases planned for 2020. There will be higher gambling tax and a new higher levy on natural resources as well as tobacco products and fuels.
3.5 ​Budget - Lithuania
Lithuania’s 2020 state budget is planned with a modest general government surplus of 0.2% of GDP.
The central government's budget revenue is projected to grow by 9% year-on-year to €11.545bn, while spending is planned to increase by 8% to €12.646bn, local media reported as the bill was submitted to parliament. It was adopted by the parliament on December 18.
Among the key areas of spending, the budget bill envisages an extra €327mn on pensions and €149mn to increase monthly child benefit. On the revenues side, the bill set out an increase in excise duties on strong alcohol, tobacco and fuel, a levy on polluting cars and an expansion of the real estate tax base.
However, as of December the government was under heavy pressure to increase spending in various areas. Notably, teachers staged a warning strike in December that brought back unhappy memories of the strikes last year that forced out the then education minister. University professors in Vilnius also staged a walkout to demand more money. Meanwhile, farmers protested against plans to raise taxes on fuel.
In future, Lithuania is expected to receive less money from the EU, while its contributions will grow. The country has also committed to spending 2.5% of GDP on defence until 2030.
3.6 ​Budget - Slovakia
According to the finance ministry, the main priority for 2020 is to recover public finances in order to achieve long-term sustainability. The ministry has prepared an amendment adjusting both the revenue and expenditure sides of the budget, which has already been approved by the parliament. The current draft budget expects a deficit of 0.49% of GDP in 2020.
26​ CESE Outlook 2020​ ​ ​www.intellinews.com