Analytics, Budget, Economics, Financial Services, GDP

In 2010, the general government revenue amounted to LTL 32318.8 million, expenditure – LTL 39024.1 million¹. Tax revenue amounted to LTL 15673.2 million (48.5% of the total revenue of government sector). In comparison to 2009, this revenue decreased by 2%, or LTL 319.3 million. Social contributions amounted to LTL 10207.1 million (31.6 proc. of the total revenue of government sector). In comparison to 2009, this revenue decreased by 7.9% or LTL 873.8 million.

Expenditure of general govern­ment, which mainly consists of expenditure on social protection (about 38%), education (16%), and health (13%), decreased by 3.1% in 2010. Expenditure on social benefits and transfers decreased by 10.4% in 2010.

The central government deficit amounted to LTL 4307.4 million (4.6% of GDP). The local government had surplus amounting to LTL 77.9 million (0.1% of GDP). In 2010, the deficit of social security funds, due to reduction in pensions and maternity benefits, decreased by LTL 534.4 million and amounted to LTL 2475.8 million (2.6% of GDP).

At the end of 2010, the general government debt at nominal value amounted to LTL 36113.8 million, or 38.2% of GDP. Over the past two years, government debt has been growing rapidly: in 2009 – by LTL 9608.3 million, in 2010 – by 9130.7 million a year.

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¹ According to the Maastricht criteria, when calculating the deficit of government sector, net interest payments made on financial derivatives are included in the expenditure; therefore, the expenditure of general government sector in 2010 is by LTL 31.6 million less than that provided in the ESA’95 Table 2 “General government income and expenditure”.

Lithuanian general government deficit (-) and debt, a percentage of GDP

At the end of 2010, the general government debt comprised the central government debt – LTL 33655.1 million, local government debt – LTL 1350.3 million, and social security funds’ debt – LTL 1108.4 million.

The bulk of the general government debt consisted of outstanding securities – LTL 29619.8 million (82%). Outstanding loans at the end of the year amounted to LTL 6477.5 million. According to the loan’s term, in 2010 the major share of the general government debt fell within the long-term debt (93.7%). The short-term debt accounted for 6.3%. Over 2010, the long-term debt grew by LTL 8040.9 million, while the short-term debt grew by LTL 1089.8 million and at the end of 2010 stood at, respectively, LTL 33824.6 million and 2289.2 million.

The bulk of the borrowed funds were used to settle the general government debt and debt liabilities of social security funds, as well as to balance their cash flows and to finance public investment.

Statistics Lithuania, in cooperation with the Ministry of Finance of the Republic of Lithuania, prepared the Excessive Deficit Procedure (EDP) notification for the European Commission. According to the results of this notification, the state’s conformity to the criteria of general government deficit and debt set in the Maastricht Treaty is assessed. The indicators included in the EDP notification are prepared in accordance with the requirements of the European System of Accounts (ESA 95). The April 2011 EDP notification provides revised (2009) and preliminary (2010) data on general government deficit and debt.

On April 26, the Statistical Office of the European Union (Eurostat) will release the results of the April 2011 EDP notification of all EU member states.

General government deficit and debt

Detailed provisional data on the general government deficit and debt are available in the EDP Notification, submitted to the European Commission. The said notification is also published on the website of Statistics Lithuania.

General government sector covers state and municipal budgets, social security funds (State Social Insurance Fund Board (Sodra), Compulsory Health Insurance and Employment funds), extra-budgetary funds, public health institutions, a state enterprise State Property Fund and a state enterprise Property Bank.

General government sector deficit (-) / surplus (+) – general government revenue minus expenditure (net borrowing / net lending), calculated pursuant to the requirements for excessive deficit procedures, which are based on the provisions of the European System of National and Regional Accounts 1995 (ESA 95).