Lithuania proposes €27.9 billion budget with defence spending at 5% of GDP

Lithuania’s government approved its draft 2027 state budget on 16 October, proposing €27.9 billion in expenditure while maintaining defence spending at 5% of GDP and increasing wages and pensions.

The draft, which will be submitted to parliament, projects state budget revenue of €22.2 billion, up 5.2% from 2026, while expenditure is set to rise by 1.3%. The general government deficit is forecast at 3.8% of GDP, above the EU’s standard 3% threshold, with public debt projected to reach 48.2% of GDP.

Defence funding, including resources from the State Defence Fund, is planned at €4.8 billion. Although the allocation will increase slightly in absolute terms, its share of GDP will decline from 5.38% in 2026 to 5% next year.

The government is also proposing an 8% increase in the statutory monthly minimum wage, from €1,153 to €1,245. The average old-age pension would rise from €747 to €825, while additional funding is earmarked for public-sector salaries, family benefits and healthcare.

The budget allocates €749.3 million to roads and related programmes, including national and EU funding. Municipal revenue is expected to exceed €8.1 billion.

The proposals form part of Lithuania’s 2027–2029 budget package and will require approval by the Seimas before taking effect.

Source: Lithuanian Ministry of Finance
https://finmin.lrv.lt/lt/naujienos/finansu-ministras-t-valys-apie-2027-m-valstybes-biudzeto-projekta-turime-investuoti-i-nacionalini-sauguma-cia-ir-dabar-taciau-kartu-turime-pasirupinti-ir-savo-zmonemis-mwXK/