Seimas to decide on defence funding
On Tuesday Lithuanian Parliament deliberated on amendments to 2014 state budget project in order to increase appropriations for national defence by LTL 130 million (EUR 37.6 million) yet this year.
Budget appropriations for the Ministry of National Defence should amount to LTL 85 million (EUR 24.6 million), it was also suggested to increase the Privatisation Fund budget in order to allocate LTL 45 million (EUR 13 million) for defence.
After hearing conclusions of the Committee on Budget and Finance as well as opinions of political groups and members of Parliament, it was decided that state budget amendments will be approved on 10 July.
Based on conclusions of the Committee on Budget and Finance, the allowed convergence criteria threshold (3 percent of GDP) established by the Maastricht Agreement will not be exceed if state budget deficit is increased by LTL 20 million (EUR 5.8 million).
Revenue of the revised 2014 state budget, including the EU and other international financial support, is expected to amount to LTL 26.1 billion (EUR 7.5 billion), whereas appropriations for expenditure and acquisition of assets should stand at LTL 27.1 billion (EUR 7.8 billion). Appropriations would exceed revenue by LTL 960 million (EUR 278 million).
As reported, Lithuania has committed to gradually augment defence spending which has to reach 2 percent of GDP by 2020.