The Lithuanian parliament, the Seimas, has approved the state budget for 2026 with 80 votes for, 39 against, and 7 abstentions, BNS reports. Under the budget, annual revenues, including EU funds, will amount to EUR 21.07bn and expenditures to EUR 27.51bn. The government’s net borrowing limit has been increased to EUR 7.79bn, ELTA reports. The budget deficit is projected at 2.7% of GDP and public debt at 45.4% of GDP. Defence spending will total EUR 4.8bn, which will amount to a record 5.38% of GDP. The government will allocate EUR 1.06bn of additional budget funding to social security and income support. Road construction and maintenance will receive EUR 815.5mn from the state budget, and the government expects to receive another EUR 2.9bn from EU funds. Also, the budget will allocate nearly EUR 117mn to raise salaries for teachers and public sector workers.
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