๐ฑ๐น Lithuania | State Audit: debt seen rising to 53.8% of GDP by 2028
The National Audit Office projects government debt at 42.6% of GDP this year, rising faster than the fiscal structural plan foresees โ to 53.8% by 2028. Controller Irena Segaloviฤienฤ warns that raising defense funding toward 5% of GDP while maintaining public services requires new stable revenues; otherwise, debt may edge toward the 60% Maastricht limit.
At end-2024, the debt stock stood at โฌ29.99 bn (38% of GDP). The 2026 budget draft foresees debt reaching 45.1% next year.
Context โ policy backdrop & household impact
Vilnius is rolling out tax changes that broaden the base: VAT will apply to banksโ non-financial services, and from 2026 a 10% insurance levy will cover most non-life policies. Other reliefs (e.g., for heating) are being pared back. The overall effect keeps debt below Maastricht levels but on an upward path unless growth and new revenues offset defense costs. For households, this mix implies mild price pressures in selected services while the labor market remains tight.
Image: photos/photo_12@05-11-2025_18-58-44.jpg