Lithuanian Assets May Raise 1.5 Billion Litai for Budget, Simonyte Says
Lithuania expects its planned overhaul of state-owned companies to raise 1.5 billion litai ($376 million) for the budget in two years, Finance Minister Ingrida Simonyte said.
Revenue growth will be led by the forestry industry and real estate, Simonyte said at a press conference in Vilnius.
The Economy Ministry wants to improve returns from state assets by pulling its 300 companies into a holding company, shielding them from political influence and increasing transparency. The reform, which still requires Cabinet and parliamentary approval, would help narrow the budget deficit, estimated at 8.1 percent of gross domestic product this year.
“It may be difficult to reach 1.5 billion litai within one year but it’s truly realistic in two,” Simonyte said today.
The plan has prompted criticism from the parliamentary opposition. Kestutis Dauksys, a lawmaker with the opposition Labor Party, said government optimism “is completely ungrounded” because state-owned companies have to provide unprofitable social services.
Prime Minister Andrius Kubilius said today such skepticism won’t stop the reform.
“The discussion should no longer focus on whether the change as such is needed but rather on technical details,” Kubilius said.
To contact the reporter on this story: Milda Seputyte in Vilnius at mseputyte@bloomberg.net
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