Analytics, Budget, Economics, Financial Services, GDP, Lithuania

In 2011, general government revenue amounted to LTL 33 904.8 million, expenditure – LTL 39 752.3 million¹. In 2011, general government revenue grew by 5.9%. Tax revenue amounted to LTL 17 007.1 million (50.2% of the total general government revenue). In comparison to 2010, it increased by 8.5%, or LTL 1333.9 million. Social contributions amounted to LTL 10 785.7 million (31.8% of the total general government revenue). In comparison to 2010, it increased by 5.7%, or LTL 578.6 million.

In 2011, general government expenditure, which mainly consisted of expenditure on social protection (about 36% of the total expenditure), education (15%), and health care (13%), increased by 2.2%.

In 2011, the central government deficit amounted to LTL 3457.5 million (3.3% of GDP), the local government deficit – LTL 402.3 million (0.4% of GDP). In 2011, the deficit of social security funds amounted to LTL 1987.7 million (1.9% of GDP) and, compared to 2010, decreased by LTL 488.1 million.

At the end of 2011, general government debt at nominal value amounted to LTL 40 961.6 million, or 38.5% of GDP (LTL 13.6 thousand per capita). Over 2011, the general government debt increased by LTL 4834.2 million.

Lithuanian general government deficit and debt as a percentage of GDP

At the end of 2011, the general government consolidated debt comprised the central government debt (LTL 37 569.1 million), local government debt (LTL 1802.5 million), and social security funds’ debt (LTL 1590 million). The bulk of the general government debt consisted of outstanding securities – LTL 33 508.5 million (82% of the total general government debt). Outstanding loans at the end of the year amounted to LTL 7426.9 million.

According to the loan’s term, in 2011, the major portion of the general government debt fell within the long-term debt (94%), while the short-term debt accounted for 6% of the total general government debt. Over 2011, the long-term debt grew by LTL 4657.3 million, the short-term debt – by LTL 176.8 million; at the end of the year, they stood at, respectively, LTL 38 495.5 million and LTL 2466 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.

The October 2012 Excessive Deficit Procedure (EDP) notification included revised data on the general government deficit (2008–2011) and debt (2010–2011).

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¹ According to the Maastricht criteria, when calculating the general government deficit, net interest payments made on financial derivatives are included in the expenditure; therefore, general government expenditure in 2011 is by LTL 27.4 million lower than that provided in the ESA 95 Table 2 “General government revenue and expenditure”.

Changes in and the main components of the general government deficit and debt

* In September 2012, Statistics Lithuania revised GDP indicators for 2008–2011.

Detailed data on the general government deficit and debt are available in the Excessive Deficit Procedure (EDP) notification, published on the website 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 Accounts (ESA 95). 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.

On October 22, the Statistical Office of the European Union (Eurostat) will release the results of the revised 2012 EDP notification of all EU member states.

Concepts

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 care institutions, public higher education institutions and other non-market economic entities which are controlled and mainly financed (more than 50%) from respective budgets.

General government deficit (-) / surplus (+) refers to general government revenue minus expenditure (net borrowing / net lending), plus net streams of interest payments resulting from financial derivatives. 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 1995 (ESA 95).