“Next year's State budget reflects the Government programme commitments and the current challenges. The priority of the budget is the security of both every person and the state's borders. Therefore, in addition to record-breaking funding for defence needs, it also provides for an increasing minimum monthly wage, allocations to the Road Fund, increased attention to the most socially sensitive areas and an increase in the wages of employees in various fields”, Prime Minister Inga Ruginienė says.
"The 2026 budget maintains a balance between security, social justice and fiscal sustainability. We allocate EUR 4.8 billion to defence, or 5.38 % of GDP, and this is the largest funding in history, strengthening the security of our state and the entire region. At the same time, we increase personal income and social security, the minimum monthly wage is rising, pensions are growing by an average of 12%, and the indexation of social benefits will allow support for the most vulnerable groups to grow faster. With this budget, we are sending a clear message to the people of Lithuania – we see both the complex geopolitical situation and every person. We are investing in security in the broad sense – in the state that cares about its borders and its people", Minister of Finance Kristupas Vaitiekūnas states.
Personal income and social security
The draft budget for 2026 allocates EUR 948.6 million for personal income and social security. Of this amount, EUR 438.4 million will be allocated to increasing the income of the employed.
EUR 148.8 million will be allocated to raising the salaries for teachers, academic and non-academic staff of research and study institutions, and sports coaches, EUR 148 million for medical staff, EUR 24.1 million for statutory officials (Fire Protection and Rescue Department, Police Department, State Border Guard Service, Prison Service, Probation Service, Customs Department), EUR 12 million for employees of cultural institutions and arts, and EUR 10.6 million for residents.
It is estimated that, compared to 2025, next year, the average net wages of doctors will grow by EUR 103 (3%), nurses – by EUR 127(8%), residents – by EUR 313 (12.6%), teachers – by EUR 93 euros (5%), academic and non-academic staff of research and study institutions – by EUR 105 (5%), coaches – by EUR 76 (5%), and culture and art staff – by EUR 62(5%).
The budget for the coming year proposes to increase the minimum monthly wages (MMW) by 11.1 % from EUR 1,038 to EUR 1,153. This change will mean an additional EUR 69.58 growth in net income of individuals earning the MMW.
At the same time, an increase in the base amount is planned next year in order to ensure the growth of wages of public sector employees and compensate for the impact of inflation. For this, the draft State budget proposes to allocate an additional almost EUR 29.1 million annually.
From 1 January 2026, it is planned to change the procedure for indexing the base amounts of social benefits in order to ensure that it reflects changes in prices and average wages, therefore, faster indexation of benefits linked to the base amounts is planned. The draft State budget proposes to allocate an additional EUR 121.8 million in funding for scholarships, child benefits, welfare benefits, compensation for the costs of providing individual assistance to persons with disabilities, and other benefits that will increase due to the indexation of the basic amounts of social benefits.
This means that the lump sum child benefit will increase by EUR 266 (35 %) from 1 June 2026, and the child support benefit by EUR 59 (47%). The circle of recipients of the childcare benefit is also being expanded – it will be granted to all persons raising children (not only those who are studying or learning) who are not entitled to receive a childcare benefit from Sodra.
The draft budget increases old-age pensions by 12 %, with EUR 388.4 million allocated for this. The average old-age pension will increase by EUR 80 next year (from EUR 670 to EUR 750), and for those with the necessary length of service - by EUR 90 (from EUR 720 to EUR 810). This decision will affect 632 thousand persons. It is projected that next year the average wages in the country will grow by 7.3 %t, and the average annual inflation will reach 3.2 %.
The Government is committed to achieving an average old-age pension of 50% of the average net wages by 2030. It is planned that in 2026 the average old-age pension will amount to 47.3 % of the average net wages, and the average old-age pension for those with the required length of service will account for 51.1 % of the average net wages.
Defence
In implementing the Government Programme and the decision of the State Defence Council to allocate at least 5% of the gross domestic product (GDP) to defence in 2026-2030, the funding of the Ministry of National Defence together with the Defence Fund in 2026 will amount to EUR 4.8 billion or 5.38% of the gross domestic product (GDP). Of this amount, EUR 700.3 million will be from the State Defence Fund.
Defence funding will grow by almost EUR 1.6 billion next year – more than any other area. In 2026, defence spending will account for 14% of total budget expenditure (excluding EU and New Generation Lithuania loan funds), and defence funding will take second place after social security in the overall expenditure structure.
Greater funding is planned to be allocated to strengthening state defence, modernising the Lithuanian Armed Forces, acquiring new and modern weapons, and developing military infrastructure (construction of training grounds and barracks). The biggest immediate priorities are the establishment of a national division and the establishment of the German brigade in Lithuania by 2027.
Infrastructure
In 2026, EUR 815.5 million will be allocated to the country's infrastructure. Of this amount, EUR 436.6 million is planned for the Road Maintenance and Development Programme (RMDP), EUR 178.8 million for the State Road Fund, and EUR 200.1 million from EU financial support.
The currently prepared amendment to the 2021–2027 Investment Programme for military mobility activities, through the reallocation of funds provided for in the programme and additional funding, provides for EUR 99.6 million in European Union (EU) funds. Also, from 2027, it is planned to receive income (EUR 200 million each in 2027 and 2028) from electronic road tolls (E-tolling), which is by EUR 126 million more than planned to be collected in 2026 from road user fees.
Revenue and expenditure increase
The 2026 draft State budget provides for EUR 21.0 billion in revenue. Compared to 2025, revenue grows by 16.8 % or EUR 3 billion. The State budget provides for EUR 27.5 billion in expenditure (it grows by 18.9 % compared to 2025, or more than EUR 4.3 billion).
The largest share of budget expenditure, excluding EU and New Generation Lithuania loan funds, is allocated to social security - more than EUR 12.6 billion (an additional almost EUR 1.1 billion compared to 2025). Healthcare will receive almost EUR 4.8 billion (an additional EUR 414 million), education – EUR 4.8 billion (an additional EUR 418 million), defence – EUR 4.9 billion(an additional almost EUR 1.6 billion), public order and public protection – EUR 1 billion (additional EUR 16 million), for the areas of recreation, culture and religion – EUR 946 million (additional EUR 42 million), for housing and utility services – EUR 741 million (additional EUR 63 million), for environmental protection – EUR 517 million (additional EUR 78 million), for general state services – EUR 3.1 billion (additional EUR 544 million), for the economy – EUR 2 billion (EUR 51 million less).
Municipal revenue is also growing significantly – it will exceed EUR 7.3 billion (compared to 2025, it grows by EUR 696.9 million or 10.4 %).
EU investments in Lithuania are accelerating – record amounts of EU funds are planned for 2026. Next year, it is planned that EUR 1,247 million investments will be disbursed under the 2021-2027 Investment Programme, and EUR 1,643 million - under the plan "New Generation Lithuania".
The draft State budget for 2026 prepared by the Ministry of Finance projects that the general government deficit in 2026 will amount to 2.7 % of GDP, and general government debt will amount to 45.1 % of GDP.
