Once endorsed by the Cabinet, the budget package will go to the parliament for approval.
The central government budget deficit is projected at 4.9 percent next year.
Finance Minister Gintare Skaiste said on Thursday that a key priority was to contain the energy price shock and to take measures to maintain people's purchasing power.
The draft budget earmarks 812 million euros for covering part of households' natural gas and electricity bills.
The 15min.lt online news site has reported that the government proposes to fix public electricity supply prices for households at 28 euro cents per kilowatt-hour in the first half of 2023 and at 33 cents in the second half.
Vytautas Mitalas, the deputy speaker of the parliament, has told BNS that the government plans to subsidize part of electricity costs for businesses as well, with up to half a billion euros to be provided for the purpose for the period between October and March.
MP Marius Matijosaitis of the Freedom Party's political group in the parliament has told BNS that the government next year is planning to extend the reduced 9 percent VAT rate for hotels indefinitely and keep it in place for restaurants until the middle of the year.
The current zero VAT rate on district heating will remain in place two more heating seasons to help mitigate a surge in heating bills, a measure that is estimated to cost the state around 111 million euros in lost budget revenue over two years.
The government has decided in principle to raise the minimum monthly wage before tax by 15 percent to 840 euros and lift the non-taxable income threshold by 16 percent to 625 euros next year.
It is also planning to increase the basic monthly salary rate for public sector employees by 5 euros to 186 euros, and to further raise pensions and other social benefits.
Mykolas Majauskas, chairman of the parliamentary Committee on Budget and Finance, has said that next year's budget earmarks a billion euros for covering part of soaring energy prices, and another 1.5 billion euros for increasing incomes.
President Gitanas Nauseda has said that the state could help companies to cushion surging energy prices through soft loans, tax deferrals and various subsidies for small-sized enterprises, and should also consider electricity price subsidies for businesses.
According to Nauseda, the total support to households and business could reach 4.5 percent of GDP. Based on the Finance Ministry's 2023 GDP forecast (at current prices), this would amount to an estimated 3.2 billion euros.
The Compulsory Health Insurance Fund's budget for 2023 is balanced, with both revenue and expenditure projected at 3.118 billion euros, 11.7 percent more than the 2022 estimate.
Under the law, October 17 is the deadline for submitting next year's draft budget to the Seimas. Last year, the parliament started debating the 2022 budget on October 19 and adopted it on December 14.