Analytics, Budget, EU – Baltic States, Financial Services, GDP, Lithuania

In 2013, general government revenue amounted to LTL 39 645.6 million (EUR 11 482.2 million), expenditure – LTL 42 808.9 million (EUR 12 398.3 million). The decrease in general government deficit was determined by a 4.6% increase in general government revenue. Tax revenue amounted to LTL 19 407.6 million (49% of the total general government revenue). Against 2012, it increased by 5.4% and amounted to LTL 994.4 million. Social contributions amounted to LTL 13 265.9 million (33.5% of the total general government revenue). Against 2012, it increased by 4.6% and amounted to LTL 580.2 million.

Over the year, expenditure of the general government increased by 3.1% and amounted to LTL 1 274.3 million. The bulk of the general government expenditure consisted of expenditure on social protection, education and health care.

In 2013, the central government deficit amounted to LTL 1 606.3 million (1.3% of GDP), the local government deficit – LTL 330.2 million (0.3% of GDP), the deficit of social security funds – LTL 1 226.8 million (1% of GDP). Over the year, the largest decrease was recorded for the deficit of social security funds – by LTL 756.7 million, which in 2012 stood at 1.7% of GDP. In 2013, the central government deficit increased by LTL 249.3 million. In 2012, the central government deficit made up 1.2% of GDP.

At the end of 2013, the general government debt at nominal value amounted to LTL 47 084.2 million (EUR 13 636.5 million), or 39% of GDP (LTL 16 thousand per capita). In 2013, the general government debt increased by LTL 1 153.5 million.

Lithuanian general government deficit and debt as a percentage of GDP

At the end of 2013, the general government consolidated debt comprised the central government debt (LTL 43 602.0 million), local government debt (LTL 2 147.2 million), and social security funds' debt (LTL 1335 million). At the end of 2013, the non-consolidated debt of central government amounted  to LTL 43 602.8 million, local government debt – LTL 2 398.0 million, and social security funds' debt – 11 050.6 million (at the end of 2013, the balance of central government loan to social security funds amounted to LTL 9 715.6 million).

The bulk of the general government debt consisted of outstanding securities – LTL 36 676.7 million (78% of the total general government debt). Outstanding loans at the end of the year amounted to LTL 9 557.7 million, deposits – LTL 849.9 million.

In 2013, the long-term debt accounted for 94.3%, while short-term debt – 5.7% of the general government debt. Over 2013, the long-term debt grew by LTL 1 497.7 million, while the short-term debt decreased by LTL 344.2 million; at the end of the year, they stood at, respectively, LTL 44 419.6 million and LTL 2 664.6 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 investments.

Table 1. The dynamics and main components of the general government deficit and debt

The EDP notification of October 2014 provides the revised data for 2010–2013. Compared to April 2014, the data changed due to the implementation of the ESA 2010 methodological requirements and use of the new data sources. The deficit and debt was mainly influenced by the reclassification of some enterprises controlled by the general government into general government sector.

Table 2. Influence of the revision to the general government deficit (1)

¹ Indicators calculated according to the new methodology of ESA 2010, compared to the indicators calculated according to the methodology of ESA 95.

² Difference indicated with a minus (–) sign means an increase in deficit, with a plus (+) sign – a decrease in deficit.

Table 3. Influence of the revision to the general government debt (1)

¹ Indicators calculated according to the new methodology of ESA 2010, compared to the indicators calculated according to the methodology of ESA 95.

² Difference indicated with a minus (–) sign means a decrease in debt, with a plus (+) sign – an increase in debt.

Detailed data on the general government deficit and debt are available in the EDP notification, published on the Official Statistics Portal of Statistics Lithuania. According to the results of this notification, the state's conformity to the criteria of the general government deficit and debt set in the Maastricht Treaty is assessed.

Each year, before 1 April, Statistics Lithuania, in cooperation with the Ministry of Finance of the Republic of Lithuania, prepares the EDP notification, following the requirements of the European System of National and Regional Accounts (ESA 2010). As soon as the Commission approves the notification, statistical information on the general government deficit and debt is released to the public. Statistics Lithuania submits the revised EDP notification to the European Commission by 1 October.

The Statistical Office of the European Union (Eurostat) will publish the results of the revised 2014 EDP notifications of all the EU member states on 21 October 2014.

Concepts

General government sector – a sector covering institutional units financed by compulsory payments, whose main activity comprises the provision of non-market services and/or redistribution of national income and wealth.

General government sector includes entities financed from the state, municipal and social security funds' budgets, as well as non-budget funds and other non-market producers (part of public institutions and enterprises controlled by the state and municipalities).

General government deficit (-) / surplus (+) refers to general government revenue minus expenditure. These indicators are calculated pursuant to the requirements for excessive deficit procedures, which are based on the provisions of the European System of National and Regional Accounts (ESA 2010).

More information on the issue is available on the Official Statistics Portal of Statistics Lithuania.