First session of the Seimas adopted the state budget and tax changes, and renewed lockdown support measures

Press release, 14 January 2021

On 14 January 2021, the Seimas closed its first regular (autumn) session. Having convened for its first sitting on 13 November 2020, the Seimas held a total of 30 sittings adopting 185 legal acts, 91 of which being a law.

The new Seimas started its work with the formation of the leadership of the Seimas, the Conference of Chairs, Committees and Commissions of the Seimas and other structural units. During its session, the Seimas revised the governing of parliamentary work, established a new Committee for the Future, and provided the Seimas with the possibility to hold plenary sittings remotely. In addition, the Lithuanian Parliament approved the programme of the new Government, following which the appointed members of the Government were sworn in and given the mandate to act.

The autumn session focused on this year’s state budget, tax changes, renewal of lockdown support measures for business and employees, and other topical matters.

During this session, the Seimas got fully prepared to work remotely and has already held three plenary sessions this way.

According to Viktorija Čmilytė-Nielsen, Speaker of the Seimas, this first session of the Seimas was a time of major challenges for the parliamentarians. ‘The pandemic has revealed that we could not afford the time for practicing. We had to dive right in to work, and do it with complete thoroughness and emphasis. It was inevitable to rush,’ the Speaker of the Seimas said.

The Speaker of the Seimas is convinced that the most important thing is that the Seimas approved the most gender-balanced Government in Lithuania’s history. ‘This is the major achievement. The Government, in its turn, was able to submit to the Parliament this year’s budget, which is truly relevant and much needed for the current situation, and which we have adopted. It is also crucial that we have finally provided the Seimas with the opportunity to work remotely. This means that legislative continuity and direct representation will be ensured on a permanent basis. For this reason, I see it as an achievement which guarantees our independence on one additional aspect,’ said Čmilytė-Nielsen.

State budget

 

At its first session, the Seimas fulfilled one of its key tasks, as it approved the budgets of the State, the State Social Insurance Fund Board (Sodra), and the Compulsory Health Insurance Fund for 2021.

The State Budget for 2021 approved by the Seimas focuses particularly on the reduction of the negative effects of the coronavirus pandemic. The new Government increased budget spending on the management of the coronavirus pandemic. Additional funds were foreseen for incapacity benefits, subsidies, and preferential loans.

The Seimas approved the revenue of the state budget amounting to more than EUR 11.252 billion and expenditure amounting to EUR 15.828 billion. Appropriations exceed revenue by almost EUR 4.576 billion. The general government deficit will account for 7 % GDP, of which 2 % GDP are due to the expenditure associated with the measures to manage the effects of the COVID-19 pandemic. It is projected that Lithuania’s economy will grow by 2.8 % over the whole year 2021, i.e. 0.5 % less than forecast in September.

The minimum monthly wage increases to EUR 642 before tax in 2021.

Tax changes for residents and businesses

 

The amendments adopted by the Seimas will allow to index and increase pensions this year. In 2021, old-age, early pensions, work incapacity pensions, survivor’s and orphan’s pensions will grow by 9.58 %. This year, it was also decided to start indexing state pensions of the first and second degree and State pensions for officials and servicemen, judges, victims of repression, and scientists.

The Seimas increased child benefits and created more opportunities for schoolchildren to acquire preferential tickets for public transport. In addition, free meals will be available to all second grade primary school schoolchildren from this autumn onwards.

The Seimas adopted a decision to raise wages of the lowest-paid earners in the public sector, as well as to incrementally increase wages of employees in the social services sector from July onwards. The base amount of the basic salary this year is set to grow by one euro to reach EUR 177.

It was also decided that civil servants who have reached retirement age and are therefore dismissed from office, will be eligible to severance pay equal to two times their average salary on the day of their dismissal.

The Seimas granted persons affected by cancer the right to purchase a transport ticket with an 80 % discount. Moreover, limits on the reimbursement of medicines and their surcharges for poor people will be extended from 1 March 2021.

 

Residents will be able to recover part of the personal income tax paid, regardless of the number of qualifications acquired.

The Seimas introduced a preferential 5 % VAT rate since the beginning of this year for electronic newspapers, magazines and other periodicals published by electronic means.

Emergency and lockdown: support measures

 

The Seimas renewed lockdown support measures for businesses and employees and adopted decisions that are important for specialists fighting the coronavirus directly.

During the autumn session, the Seimas increased the amount of downtime payment by one and a half times, extended the payment of the job seekers allowance and decided to apply a more targeted support measure to the self-employed and the victims of imposed restrictions. The Seimas asked the government to assess the possibility for small businesses to operate if they ensure compliance with the lockdown rules.

Some EUR 1.083 billion for managing the negative consequences of the COVID-19 pandemic were allocated in the budget for 2021, including around EUR 573 million for sickness (incapacity) benefits, subsidies for downtime, benefits for both self-employed and jobseekers; approximately EUR 230 million is earmarked for subsidies, preferential loans, partial compensation of interest for companies affected by COVID-19 and other business support; approximately EUR 65 million is earmarked for the purchase of COVID-19 vaccine, financing of the costs of the Compulsory Health Insurance Fund of approximately EUR 45 million to ensure bonuses for medical staff; some EUR 80 million is earmarked for the purchase of treatment and medical equipment, laboratory tests, etc.; around EUR 90 million is foreseen for other different institutions involved in combating the negative effects of the coronavirus pandemic, etc.

The Seimas agreed to facilitate better conditions for volunteers to assist medical staff and expanded the list of beneficiaries to include persons involved in emergency response and mitigation of emergency consequences. This will encourage enterprises and non-governmental organisations to provide emergency assistance to medical personnel and volunteers, as support in respect to the beneficiary will no longer be taxed. It will not be necessary to keep register of the support received and used, and to account for the support received and/or used.

The Seimas also decided to set a zero VAT rate on vaccines against COVID-19 disease and its diagnosis for two years.

Other important decisions

 

The Seimas adopted a number of decisions in various areas, appointed and dismissed state officials and judges, and met the requests of the Prosecutor General to allow prosecution of Petras Gražulis and Vytautas Gapšys, Members of the Seimas.

Following the change of office, the Seimas agreed on the long-term guidelines and continuity of Lithuania’s foreign and European policy, as well as undertook to promote closer bilateral cooperation between Lithuania and the United States and to consolidate a strategic partnership between the two countries.

On the eve of 13 January, the Seimas adopted a resolution thereby expressing its profound respect for the defenders and victims who safeguarded Lithuania’s freedom, and awarded the 2020 Freedom Prize to the democratic opposition in Belarus.

Towards the end of 2020, which had been designated as the Centenary of the Constituent Seimas, the Parliament established the Aleksandras Stulginskis Star award for promoting the ideas of parliamentarianism, democracy and statehood.

Other decisions of the Seimas that are relevant to the population include the following: the driver’s licence will now also be used for identification purposes; the previous refund procedure for failed trips was returned; the limitation period in defence of the public interest regarding contesting of territorial planning documents was extended; more powers were granted to the population in resolving matters pertaining to self-government by establishing conditions for their participation in the management of public affairs of a municipality; legal foundations for new grounds for acquiring dual (multiple) citizenship were established whereby a citizen of the Republic of Lithuania may concurrently hold a citizenship of another state, where a citizenship of the Republic of Lithuania was acquired by birth and a citizenship of another state was acquired not by birth before reaching 18 years of age.

The Seimas will convene for its second regular (spring) session on 10 March 2021.

Pranešimą paskelbė: Lietuvos Respublikos Seimo kanceliarija
„BNS Spaudos centre“ skelbiami įvairių organizacijų pranešimai spaudai. Už pranešimų turinį atsako juos paskelbę asmenys bei jų atstovaujamos organizacijos.
2021-01-19 09:11
Politika, Kiti pranešimai
pasidalinti
atgal