Lithuania Debates 2027 Budget Deficit, Family Benefits and Universal Conscription

Lithuania's government proposal for the 2027 state budget may not pass easily, according to the LRT English newsletter of 30 October from the national public broadcaster LRT. The plan aims to keep military spending very high without cutting welfare, while adding an ambitious family support package. Because tax increases are seen as unacceptable, borrowing is left as the main way to pay for it all.

Deficit and coalition disagreements

The large deficit has prompted concerns among the centre-right opposition and liberal economists about debt sustainability. The finance minister was also hospitalised this week. Some members of the ruling coalition are voicing dissent as well. The Democrats "For Lithuania" are demanding an earlier roll-out of new child benefits, while the Farmers and Greens Union is trying to tie its votes to a referendum on the definition of family. The Social Democrats lead the government, and, in LRT's assessment, their junior partners fear the senior party will claim all the credit.

Sport and foreign policy

Lithuania's sports authorities continue to bar Belarusian and Russian athletes from entering the country. Earlier this month, the International Modern Pentathlon Union withdrew Kaunas's right to host a World Cup stage next year. Politicians and sports officials say the country will not change course. LRT has confirmed it does not plan to boycott next year's Eurovision, even as more countries withdraw over Israel's participation.

Conscription and other items

Politicians are calling for universal conscription. Lithuania abandoned conscription in the 2000s and partially reintroduced it in 2015. The armed forces say they lack enough instructors and housing facilities for so many draftees. The opposition conservatives presented a bill this week for universal conscription by the end of the decade, while the cabinet and the president agreed on a deadline of 2032.

Lithuanian authorities have received confirmation that two nationals have been detained in Iran, where they had reportedly travelled for tourism. The reason for the detention remains unclear. Fitch has affirmed Lithuania's A+ credit rating.