Lithuania's defense funding plan falls short as land sales yield millions, not billions

A bold plan to fund national defense by selling state-owned agricultural land, aiming to raise 1 billion euros, has yielded meager results, falling far short of expectations.

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Let's collect a billion for defense

The initiative, dubbed "Let's collect a billion for defense" by its proponents, was met with initial euphoria but lacked practical consideration, according to Audrius Gelžinis, chairman of the Regional Trade Union Federation. He recounts a bet with the Minister of Environment that the scheme would not even collect a third of the target amount.

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We bet that it will not be possible to collect a billion for defense from sold state agricultural land plots according to such a scheme as planned by the members of the Seimas. Not even a third of a billion will be collected.

Critics, including Gelžinis, pointed out the law's excessive restrictions and a 25% markup on market value, which they argued would discourage buyers. Despite these concerns, the law was passed unanimously by 104 members of parliament. The current Minister of Agriculture, Kęstutis Mažeika, who voted in favor of the law as a member of parliament, now attributes the sales' stagnation to "bureaucratic hurdles" rather than the inherent limitations of the policy.

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There are too many restrictions and limitations foreseen in this project, and the 25% markup on market value will further deter potential buyers.

Data reveals a stark reality: only 2.6 million euros were collected for the state defense fund in the first half of the year. The ambitious goal of selling 100,000 plots of land saw only 5,000 applications from 2,000 interested parties. This lack of demand suggests that potential buyers find the prospect of purchasing land, paying property taxes, and managing it less attractive than simply renting, especially when rental fees are comparable to property taxes.

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bureaucratic hurdles