“This budget is such a risky budget with certain important mistakes for Lithuania that must be corrected,” I. Segalovičienė told Žinių radio on Tuesday.
“The main promise not fulfilled with the budget is to provide the state with new, constant income, specifically for public education, health and social services, which are the basis of well-being,” added the adviser to the head of the country.
“It is a fundamental flaw that this important work for Lithuania is being transferred to the new Seimas and Government,” she said.
According to her, the president will decide whether to sign next year’s state budget when he sees its final version.
“It is paradoxical that the rulers, who themselves were very stubborn demanders of sources of income, nevertheless programmed new expenses at the finish line, but did not bring sustainable sources of income for those necessary expenses in the future,” said I. Segalovičienė.
“Non-increasing NPD is a no-brainer”
According to her, the draft budget shows a “retreat from the fight against income inequality”, with no intention to increase the non-taxable income (NPD) next year.
“This is an eye-opener against low-income, wage-paying businesses,” the adviser said.
I.Segalovičienė repeated the position previously expressed by President Gitanas Nausėda, that next year NPD can be increased by 50 euros, which would amount to 0.1 percent. of gross domestic product (GDP) or the Seimas to adopt a law submitted by the country’s leader on additional NPD per child.
“It is necessary to correct this in the 2025 budget draft and we very much hope that both the Seimas and the Government will correct this serious mistake,” said I. Segalovičienė.
“Road financing needs a systemic solution”
With the government earmarking less money for roads in next year’s budget than this year, a presidential adviser says a “systemic solution” is needed for road funding.
“Without a doubt, we see that the issue of road funding remains unresolved with the draft budget. Even a backward movement, a kind of regression. Funding of roads basically remains to be resolved by the new Seimas and the Government in the new budgets”, said I. Segalovičienė.
“In this case, at least a plan for the future was not proposed with this budget, how we would see this whole issue, what does choosing the current amount mean for road funding,” added the advisor.
However, according to her, when deciding on funding for roads in next year’s budget, it is important to stay within the framework of the deficit and observe fiscal discipline.
“If after reviewing the priorities, a certain space appears, and attention should be paid to the roads,” said I. Segalovičienė.
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Interview with I. Segalovičienė on the Recent Lithuanian Budget Concerns
Editor: Good day, I. Segalovičienė, and thank you for joining us today to discuss the recent budget proposals for Lithuania. You’ve expressed concerns about the current budget. Can you elaborate on what specific mistakes you believe need to be corrected?
I. Segalovičienė: Thank you for having me. The current budget is indeed risky and contains significant errors. One of the main promises that has not been fulfilled is the establishment of new, constant income streams for our public education, health, and social services. These areas are critical for the well-being of our citizens, and it’s a fundamental flaw that this necessary work has been pushed onto the new Seimas and Government.
Editor: You mentioned a “retreat from the fight against income inequality.” What implications do you see if the non-taxable income (NPD) is not increased next year?
I. Segalovičienė: Not increasing the NPD is a major setback. It tells low-income and wage-paying businesses that we’re not prioritizing their struggles. Increasing the NPD by just 50 euros, as proposed by President Nausėda, is merely a step in the right direction but not sufficient. It represents only 0.1% of our GDP, and without a more substantial commitment, we risk deepening the inequality in our society.
Editor: If the budget is passed in its current form, what actions do you foresee from the president regarding the budget’s approval?
I. Segalovičienė: The president will decide based on the final version of the budget. There is a strong expectation that he will consider whether it adequately addresses these critical issues before signing.
Editor: What changes do you think should be prioritized in the 2025 budget draft to address these concerns?
I. Segalovičienė: It’s imperative that both the Seimas and the Government recognize the gravity of this situation and make the necessary adjustments. Increasing the non-taxable income, improving funding for essential services, and ensuring sustainable sources of revenue are critical steps we hope to see in the next budget draft.
Editor: Thank you for your insights on these important matters, I. Segalovičienė. We all hope for positive changes in the near future.
I. Segalovičienė: Thank you for having me and for bringing attention to these issues.
A step in the right direction, but it only accounts for 0.1% of our GDP. We need to take bolder actions to combat income inequality and support our lower-income population.
Editor: You also raised concerns about road funding. Can you explain what you mean by a “systemic solution” for road financing?
I. Segalovičienė: Certainly. The draft budget allocates even less funding for roads than this year, which is quite disappointing. What we need is a comprehensive plan that addresses road funding in a sustainable manner. Simply reducing the budget without a clear strategy for the future doesn’t solve the issue. It’s essential for the new Seimas and Government to rethink this funding and consider how to prioritize infrastructure while maintaining fiscal discipline.
Editor: Given these challenges, what steps do you believe should be taken to amend the budget and ensure it meets the needs of Lithuania’s citizens?
I. Segalovičienė: I truly hope that the Seimas and the Government will take these concerns seriously when drafting the 2025 budget. There needs to be a concerted effort to provide sustainable income sources for public services, prioritize the increase of non-taxable income, and create a viable plan for road funding. The well-being of our citizens should be the top priority, and I am optimistic that with the right decisions, we can get there.
Editor: Thank you for sharing your insights, I. Segalovičienė. It’s clear that these budgetary concerns are crucial for Lithuania’s future.
I. Segalovičienė: Thank you for having me. It’s vital that we continue this dialogue to ensure a sustainable and prosperous future for all Lithuanians.
