The Lithuanian government has approved the budget plan for 2026 before submitting it to the Seimas for consideration on the 16th of October, and spending on defense and border strengthening has been significantly increased.
Lithuanian Finance Minister Kristupas Vaitiekūnas said that Lithuania’s strong economic growth in 2025 has allowed the government to increase planned spending. Vaitiekūnas noted during a cabinet meeting that this allows it to ensure financing for the country’s development and defense.
The draft budget foresees a budget deficit of 2.7% of GDP, while debt will increase to 45.1% of GDP. 4.79 billion euros are earmarked for defense, which will amount to 5.38% of GDP, reflecting Lithuania’s determination to strengthen the army at a time when there are security threats in the region.
Total budget revenues in 2026 are planned to be 21 billion euros, and they also include funds from European Union funds. Expenditures, on the other hand, will be 18.9% higher than this year, at 27.5 billion euros. It is expected that
the recently approved changes to tax legislation will bring an additional 278.5 million euros to the state wallet.
Vaitiekūnas indicated that next year’s budget priorities will be the social sphere, defense, infrastructure and maintaining financial stability. Lithuania will be able to afford a relatively rapid increase in salaries in 2026, and also generously finance defense. 148.8 million euros are intended for increasing teachers’ salaries, and almost the same amount is also allocated for increasing the salaries of doctors. Firefighters, police officers, prison staff, probation service employees and customs employees will receive 24.1 million more in salaries than this year. Funding for the culture and arts sector has been increased by 12 million euros.
The minimum wage in Lithuania will reach 1,153 euros before taxes next year, and the average pension will be 12% higher. Additional funds are also planned for various benefits.
The government plans to allocate 815.5 million euros to road infrastructure projects, including the possibility of borrowing to invest more in improving infrastructure. The final approval of the budget is planned for December.
Read the whole article in English here: https://www.lrt.lt/en/news-in-english/19/2716517/lithuanian-government-approves-2026-draft-budget-with-record-defence-spending
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