Lithuania could face defense budget cuts without additional funding

Lithuania's National Audit Office on Thursday warned that the country could face defense budget cuts by 2029 if no additional funding is found.

In a statement, Auditor General Irena Segaloviciene said that Lithuania will need to secure new revenue sources to maintain defense spending once a temporary clause permitting higher expenditures expires in 2028, according to broadcaster LRT.

"Before it expires, it is essential to secure sustainable sources of funding for defence and other key areas," Segaloviciene said.

She urged policymakers to act before the clause expires, warning that unless they want to cut defense funding in 2029, new revenue sources must be secured by 2028.

"If we do not take timely decisions on sustainable defence funding after 2028, we will have to rapidly reduce the deficit. This would mean either new sources of revenue or reduced spending," Segaloviciene also said.

Lithuania is following the medium-term expenditure plan approved by the European Council, which permits a temporary deviation of up to 1.5% of GDP under the defense spending clause.