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"Lithuania's budget revenue is considerably higher than last year. There would seem to be some kind of misunderstanding: GDP grew at a lower-than-projected rate, but revenue came in above the target,” Maciulis he said at a news conference.

“However, the lower economic growth is linked to exports, which have almost no impact on budget revenue. At the same time, we saw strong positive trends in the labor market and a very strong growth in excise revenue," he said.

According to the economist, revenue from excise taxes exceeded the target by 5.3%, which is attributable to a decline in contraband volumes.

"The answer is clear. The shadow (economy) in Lithuania has shrunk and smuggling has declined. This is partly a consequence of Russia's policy in Ukraine because of which Lithuanian border controls have been tightened, which has helped to reduce smuggling," Maciulis said.

"This decline is also reflected in cigarette consumption statistics. Smuggled cigarettes this year account for just 20% (of the total consumption) and that alone has generated 30 million euros in additional budget revenue this year. I think this is a success story of this year," he said.

According to Maciulis, retail fuel sales rose by 8.3% this year compared with last year, which could also be due to a decrease in the volume of fuel smuggled into the country.

An empty pack survey carried out by Nielsen showed that illegal cigarettes accounted for 20.1% of Lithuania's tobacco product market in the second quarter of this year, down from 28.4% a year earlier.

The estimated loss of state revenue from excise duties and VAT due to smuggling fell to 68 million euros, from 100 million euros in the second quarter of 2014.