Analytics, Budget, Economics, EU – Baltic States, Financial Services, Lithuania, Wages

Nauseda noted that in 2010, the Lithuanian wages bill after taxes, due to decreasing employment and lower wages, was almost by 23% smaller than in 2008, prior the financial decline. Meanwhile, in the same period, the remittances from abroad were 17% higher. The Lithuanians did not hurry spend their remittances, part of it were put into deposit accounts or set aside for a rainy day, writes LETA/ELTA.

"The phenomenon of emigration cannot be viewed entirely positively or entirely negatively. From the state's budget perspective, the remittances are not such a useful type of revenue to the state's budget as wages are, since they are only subject to indirect taxes in the process of consumption. In addition to that, the economy loses labour force and encounters with the deficit of workers, the problem of aging society aggravates as well. On the other hand, the income from emigrants help to withstand difficulties to their relatives in Lithuania, and in the case of the emigrant's return back to Lithuania, the gained experience in abroad turns out to be useful," said Nauseda.

According to Nauseda, it is likely that in the upcoming years the amounts of remittance will break new records because of increasing wave of emigration, improving economic situation in foreign countries and because of increasing prices of local currencies in those countries, particularly in the Scandinavian countries.