Funds for the return of pensions reduced during the economic crisis is expected from the increased excise tax on alcohol

Algirdas Butkevičius mentioned the expected source of funds after the ruling coalition's political council meeting. It is planned to increase the excise tax on all alcohol by twenty percent. According to the Prime Minister, the relevant legislative amendments will be submitted in March. Meanwhile, after a long time arguing that from eight hundred million to one billion Lithuanian litas would be required to offset the pension reduction due to the crisis, the ruling coalition has recently announced that a total of only 443 million litas will be needed. Compensation for reduced pensions will start this year – people receiving old age or disability pensions can expect such payments in the fourth quarter. It has been stated that Prime Minister Butkevičius's government plans to borrow about 10 billion Lithuanian litas this year, which is slightly less than three billion euro. But this money will not be used to return the expropriated pensions. The interest rate on these borrowed funds is not yet known.