The government's proposal to create a special fund to accumulate defense funds will ensure greater transparency, assures "SwedbankChief Economist Nerijus Mačiulis. According to him, having a small debt, Lithuania can afford to borrow further, and only by introducing a sugar tax, an additional 100 million would be collected in the budget. euros.
After the third meeting of representatives of business, political parties and trade unions on possible sources of defense funding, the Prime Minister announced on Wednesday the establishment of a special defense fund that could accumulate the necessary funds.
N. Mačiulis welcomes such a government proposal as bringing clarity to the allocation of funds collected for defense. Also, according to him, the fund prevents doubt that "those collected higher taxes will not be splashed".
"The decision is very good, timely. It is a very clear target fund to which a part of tax funds and other funds can be directed (…) to finance national defense," he said.
According to him, such a fund, as an alternative to taxes, can be filled with funds collected from dividends of state-owned companies, property sales, and voluntary business contributions.
At the beginning of April, N. Mačiulis commented to "Žinių radio" that Lithuania, having one of the smallest public debts in the European Union (EU), can afford to choose issuing bonds or other types of borrowing instead of increasing taxes.
"When it is necessary to increase the financing of national defense in the short term (...), it is not necessary to increase taxes very suddenly, which can have negative economic consequences, cause an economic recession and at the same time reduce overall tax revenues in the budget," N. Mačiulis emphasized to journalists on Thursday.
"As long as that economic recovery is not sustainable (…) considerations on tax increases must be very careful and (need - ELTA) not to forget alternative sources (for defense financing - ELTA)," he added.
According to the economist, the priority given by some politicians to the financing of defense from the corporate tax would reduce foreign investments. According to N. Mačiulis, JAV, investments by Germany, the Nordic region or other countries would ensure their greater willingness to defend Lithuania in the event of a real military threat.
"The best national defense is not only direct investments in the defense industry, not only (...) in ammunition, tanks, drones and all other means that we can buy, but the largest possible participation of direct foreign investments in Lithuania," emphasized N. Mačiulis.
According to him, it is also necessary to re-evaluate the elimination of excess benefits, to consider introducing new taxes, such as pollution or sugar.
"I have calculated that 100 million is possible without major negative consequences. euros to be collected in the budget (from the sugar tax - ELTA)", he said.
Ła Klimaševska (ELTA)
