Analytics, Budget, Financial Services, Lithuania

According to the data published in April deficit was smaller and made LTL 1192 million. In 2007, the general government revenue reached LTL 33294.8 million, while expenditure – LTL 34504.7 million. The central government deficit equalled LTL 833.7 million and accounted for 0.8% of GDP, that of the local government – LTL 322.8 million (0.3% of GDP), social security funds – LTL 53.4 million (0.1% of GDP). It should be noted that in 2007 the expenditure of social security funds for the first time in the recent five years exceeded revenue due to taken over liabilities related to unpaid pensions to working pensioners. 

The general government debt remained unchanged as compared to the data published in April: the general government debt at nominal value at the end of 2007 totalled LTL 16698 million, or 17.0% of GDP. Although over the year the government debt increased, its ratio to GDP was further decreasing (in 2006, this ratio made up 18.0%).  

At the end of 2007, the general government debt comprised: central government debt – LTL 15800.5 million, local government debt – LTL 986 million, and social security funds’ debt – LTL 23.8 million. 

The bulk of the general government debt consisted of outstanding securities – LTL 15458.3 million. Outstanding loans at the end of the year made LTL 1239.7 million.

The total general government debt in 2007 consisted of the long-term (97.5%) and short-term (2.5%) debts. The long-term debt in 2007 grew by LTL 1694.7 million and at the end of the year equalled LTL 16287.4  million (97.7% of total debt), while the short-term debt grew by LTL 64.7 million and as of 31 December stood at LTL 410.6 million. 

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

General government deficit and debt*

* The data on the general government deficit and debt are submitted in the Notification on Excessive Deficit Procedure and submitted to the European Commission twice a year. The European Commission observes whether data meet the quality requirements in order to avoid risk of incompliance with the criteria established by the Maastricht Treaty.

** EDP B.9 – deficit/surplus (net borrowing / net lending) calculated pursuant to the requirements of the excessive deficit procedures which are based on the regulations of the European System of National and Regional Accounts of 1995 (ESS 95).

*** The general government sector covers state and municipal budgets, social security funds (State Social Insurance, Compulsory Health Insurance and Employment funds), as well as extra-budgetary Privatization, Guarantee, Reserve (Stabilization), Decomposition of the Ignalina NPP and the 1990 Blockade funds, the Saving Restitution Account, public health institutions, state enterprise Turto fondas (Property Fund) and public company Turto bankas (Property Bank).