Article · Money and markets · Lithuania
Lithuania's 2027 budget: one euro in five is borrowed, and interest costs would double in three years
On 16 October 2026 the government approved the 2027 draft budget: state budget revenue of €22.2bn, spending of €27.9bn and a general government deficit of 3.8% of GDP, above the EU's 3% limit. The Finance Ministry plans to borrow €10.5bn in 2027, and debt is projected to rise from 48.2% to 54.3% of GDP by 2029. Debt servicing in 2027 would cost €1.12bn by the ministry's method and €1.38bn by the National Audit Office's method. The prime minister says that without a larger deficit the defence commitments and other planned spending increases would not be met; opposition leader Laurynas Kasčiūnas says new promises are driving it. Seimas committees must submit their proposals by 10 November 2026.
Lithuania plans to spend €27.9bn in 2027 and collect €22.2bn. The gap, €5.7bn, will be borrowed. That is about one euro in five of the state budget.
That is our calculation from the Finance Ministry's numbers, and it matches what Deputy Finance Minister Lineta Jakimavičienė said: Lithuania plans to borrow €10.5bn in 2027, of which €5.7bn would cover the deficit and €4.2bn would repay old debt. (BNS via jp.lt, 2026-10-16)