The use of optimistic projections would pose no problems if budget expenditures were trimmed, automatically, in lockstep with shrinking budget revenue. Sadly, this is not the case.
During the global financial crisis, public pensions in Lithuania were cut to reduce further strain on the government budget. The Lithuanian government is now considering backpaying these pensions.
This revolution has not been hampered by the economic crisis. It is going on. This year alone seven countries are going to reduce the profit tax.
The budget of the European Union could function at half of the proposed cost to EU taxpayers while boosting economic growth, according to a new report, 50:50 for 2020, published in Brussels today.
In recent years, the Baltic States have been showcased as an austerity success story. While the whole world has seen countries such as Greece, Spain and Portugal struggling to reduce their public spending, Lithuania has been hailed as an austerity example. Lithuanian success in public spending cuts has been widely acknowledged; yet simultaneous tax increases and their harmful effects have received less attention. Since the end of 2011, however, the country once again found itself…