Vilnius - The authorities in the Lithuanian capital, Vilnius, were in watchful mood Friday as crowds gathered outside the national parliament building and government offices to demonstrate against tax increases, job losses and public spending cuts.

The demonstration, organized by trade unions, was expected to draw several thousand participants from across the Baltic country.

A political protest in neighbouring Latvia and another in Bulgaria descended into violence earlier in the week, but both organizers and government said they do not expect similar scenes in Vilnius. However, police have drafted in an extra 300 officers as a precaution and have around 20 undercover officers mingling with the crowd to spot acts of provocation, police spokesmen said.

Arturas Cerniauskas, chairman of the Lithuanian Trade Union Confederation said the aim of the demonstration was to help the administration of Prime Minister Andrius Kubilius "get real" about the social impact of its austerity measures, not to overthrow the government.

Kubilius said on Friday morning he expected the event would pass peacefully.

"People's right to choose and to express their views is a valuable constitutional right. I have no doubts about the willingness of people to choose and express their opinion. I believe the rally will be peaceful, and not turn into a riots," said Kubilius.

However, he also expressed disappointment that the demonstration had been organized at all, as his government only took office in December after winning a decisive victory in last October's general election.

"It's better to discuss things round the table, not in a rally. From the outset, the coalition has worked very openly," he said.

Kubilius' government was elected on the back of a promise to restore order to Lithuania's finances. After a decade of strong growth, the economy stalled in 2008 and the effects of the global credit crunch have exacerbated imbalances in the Lithuanian economy. (dpa)