Analytics, Budget, Economics, Financial Services, Lithuania

"We foresee a two-stage revision of the budget, in April and June. During the first stage, we expect to save state funds in the order of three billion litas," Prime Minister told reporters after talks with Lithuanian President Valdas Adamkus.

Kubilius also said 4,000 jobs in the civil service would be slashed and that executives in state-owned firms could expect salary cuts and revised investment plans.

Spending plans must be revised as the economy will decline more deeply and rapidly than earlier expected, Kubilius said.

He declined to project the estimated contraction in Lithuania's economy for 2009. The finance ministry is expected to publish a forecast on April 4.

Last week, Kubilius said his country's output would plunge by more than five percent in 2009, while the government earlier forecast a 4.8-percent decline.

"Our strategic goal is to have stable finances and to keep the budget deficit within a three-percent limit of GDP (gross domestic product)," Kubilius said.

In June the government will tackle other public spending issues including salaries and social spending, he added.

Economic growth in the 3.4-million-strong 2004 EU entrant tallied at 3.1 percent in 2008 after a record 8.9-percent leap in 2007.