Stop debating, but put the cards on the table – says the ruling Freedom Party.
“It’s time to stop drawing dark, apocalyptic scenarios for Lithuania’s future,” Freedom Party leader Aušrinė Armonaitė told the media on Wednesday.
Due to the growing economy, municipalities are collecting more and more personal income tax (PIT), so the liberals proposed to allocate part of this money to defense. And he immediately got into trouble.
“It is unfair, as I say, insolent and I would add that it is cynical,” Eugenijus Gentvilas, an elder of the ruling Liberal Movement faction in the Seimas, assessed the proposal of the coalition partners to LNK news.
The mayors of the municipalities rebelled against the attempt to take part of the money from the pockets of the municipalities.
“Absolutely irresponsible and even populist decision. Here it is the same as taking away a stick from a beggar”, said the mayor of Panevėžys Rytis Mykolas Račkauskas.
The mayor of Plungė district, Audrius Klišonis, said that if the funding is decreasing, it is necessary to state precisely and clearly which public services the municipality will provide less, or will not provide them at all.
“It needs to be removed from the streets, schools, heating, and snow removal,” said the mayor of Panevėžys.
The mayor of Šiauliai, Artūras Visockas, said that in order to implement certain things, financing is necessary.
“There is no question of any withdrawal of funds,” he assured.
And the mayor of Klaipėda, Arvydas Vaitkus, says that the port of Klaipėda and the SEZ generate billions of funds for the state budget.
Last year, almost 6 billion euros fell into the state and municipal budgets from personal income tax (PIT). This is about a tenth, or 580 million euros more than was collected in 2022.
“Municipal incomes have been growing, growing and will continue to grow. Due to the growing economy of Lithuania, due to the GPM calculation methodology, the share of municipalities is increasing. It would simply continue to grow”, Minister of Economy and Innovation A. Armonaitė told LNK news.
The Freedom Party proposes to redistribute 150 million from the municipal share to defense. They say that municipal revenues would grow more slowly, but not decrease. And the money would still be used for the defense of the same cities. In addition, the funds could be redistributed already next year.
“The tax burden on people would not rise”, assured A. Armonaitė.
However, the municipalities explain that they can barely get by with the money they have now.
“The city of Šiauliai would still need around 100 million euros each year in order for it to develop normally,” said Šiauliai Mayor A. Visockas.
Klaipėda Mayor A. Vaitkus seconded – the city lacks attention and finances.
In addition, there is also the concern of how to provide shelter for everyone.
“We are already talking with the presidents of the apartment building associations so that the basements of the apartment buildings that are currently available can be used,” said A. Klišonis, the mayor of Plungė district.
However, A. Armonaitė reminds about the very recent “cheques” scandal, which clearly showed that municipalities used money not necessarily for what was needed.
“What I hear today is not people’s resistance, but officials’ resistance,” said A. Armonaitė.
It seems that it will not be easy to convince the Lithuanian Social Democratic Party with the most years of experience.
“Given how all prices, the provision of communal services and the like are rising, the need for funds in municipalities is not decreasing, but growing,” Gintautas Paluckas, representative of the social demos, told LNK news.
“Stealing municipal money, sorry, no,” he said.
And the coalition partners did not miss the opportunity to sting the liberals.
“It doesn’t have a single mayor, so such proposals, in my opinion, are revenge on the voters, who did not vote for that party anywhere in Lithuania, except in Vilnius,” said liberal E. Gentvilas.
The mayor of Plungė district, A. Klišonis, also said that “it is always easier to share money that is not in your pocket”.
“I don’t think it’s solid,” he said.
Leader of the Freedom Party, Minister of Economy and Innovation A. Armonaitė stated that she completely rejects such arguments.
“The Freedom Party, for example, is the second largest faction in Vilnius, one of the two ruling parties,” she said.
So far, there is only one objection – that more money can be taken for defense by raising the corporate tax.
See the full LNK news report here:
