Analytics, Budget, EU – Baltic States, Lithuania

Based on an assessment of Lithuania's draft budgetary plan and on the Commission's macroeconomic forecasts, the EU's executive committee expects Lithuania to comply with the provisions of the Stability and Growth Pact both in 2018 and 2019, the Finance Ministry said.

In its 2018 autumn forecast, the Commission predicts general government surpluses for Lithuania in 2018 through 2020. The budgetary plan projections of surpluses of 0.6% of GDP in 2018 and of 0.4% in 2019 are in line with the Commission's estimates. 

The Commission forecasts that Lithuania's general government structural deficit will reach 0.6 percent of GDP this year and will narrow to 0.5% next year.

At the same time, the Commission notes that expenditure developments should be monitored carefully to maintain fiscal sustainability in line with the Stability and Growth Pact.