Lithuania

The accrual-based general government budget deficit is officially estimated to at 0.9% of GDP in 2007, though the cash-based central government deficit tracked by BMI was probably lower. The difference is largely accounted for by pension compensation payments worth 0.6% of GDP that will be made during 2008-2010, but which will accrue in 2007. The 2008 budget targets a deficit of 0.5% of GDP, which is achievable providing expenditure discipline is maintained in the run up to October's parliamentary elections. Some under-spend on the capital budget due to institutional constraints on the utilisation of EU funds is also likely.

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