The Finance Ministry, which is now compiling the budget for 2013, has notified the appropriation managers about funding ceilings, which are based on this year’s funding level since the ministry seeks to have a budget deficit of no more than 2 percent of gross domestic product (GDP) next year.
According to Šimonytė, the appropriation managers claim that they need more funding for the implementation of new programs and strategic projects. They also point out to the difficulties in discharging their functions with the current level of financing.
However, the ministry is not inclined to take such requests into consideration and will only increase funding in cases where this cannot be avoided, for example, for such items as debt administration costs or contributions to EU budget.
“The authorities will also get extra funds required for EU presidency, which will be based on the data of the inter-institutional plan that will be adjusted by fall. According to provisional estimates, that amount will be approximately 136 million litas (EUR 39.4m) larger than this year. When planning funding, this item cannot be omitted, either,” Šimonytė said.
The ministry would seek to ensure a budget deficit of no more than 2 percent of GDP next year, she said.
“A possibility to achieve that will depend on the revenue forecast, which we will get after the upgrade of macroeconomic projections. In any case, in line with the Stability and Growth pact, we have to reduce the deficit by at least 0.5 percent of GDP, to at least 2.5 percent. However, we should do more if we want to balance public finances within at least three years,” Šimonytė said.
