REPUBLIC OF LITHUANIA REPUBLIC OF LITHUANIA LAW ON BUDGETING Chapter 1 General Provisions Article
- The budgetary structure of the Republic of Lithuania shall be determined by its state structure and administrative-territorial division. The budgetary system of the Lithuanian State shall consist of the independent State Budget of the Republic of Lithuania and independent budgets of local governments. Budgets of local governments shall be subdivided into the budgets of local governments of the lower and higher levels. Budgets of local governments of the higher level shall consist of the budgets of regions and towns (under the Republic's jurisdiction); budgets of local governments of the lower level -- of the budgets of rural territorial units, settlements and regional towns. Budgets shall be drawn up for the budget year beginning on January 1 and ending on December 31 inclusive. Article
- The budgets of Lithuania shall include that portion of national revenue which is appropriated for implementing State programmes for education, science, culture, health care, social welfare and social relief, environmental protection, as well as for developing the economy, maintaining institutions of state power and government, and for financing national defence. Article
- Taxes and other payments into budgets shall be prescribed by laws adopted by the Supreme Council of the Republic of Lithuania. Councils of regions and towns (under the Republic's jurisdiction) may introduce local collections. All legal persons located on the territory of the Republic of Lithuania, as well as individuals residing on said territory shall pay the required taxes and other payments into the appropriate budgets of the Republic. Article
- The procedure for apportioning revenues and expenditures between the State Budget of the Republic of Lithuania and budgets of local governments shall be established under Articles 12, 13, 28 and 29 of this Law. Income tax payable by individual residents, and excise duties (turnover tax) shall constitute the common source of all budget revenues. On the recommendation of the Government of the Republic of Lithuania, the Supreme Council shall determine the portion (in percentage) of budget revenues that is appropriated to the budgets of local governments of towns (under the Republic's jurisdiction) and regions, including the budgets of local governments of the lower level. The portions (in percentage) of revenues shall be estimated separately in accordance with income tax of individuals and excise duties (turnover tax). (Amended 24 September 1992) Article
- Institutions financed out of the budget shall be allowed to have non-budgetary financial resources. Regulations for the formation and use of resources by the institutions maintained from the State Budget and by the institutions maintained from the budgets of local governments shall be established by the Government of the Republic of Lithuania and by the executive bodies of local governments, respectively. Article
- The State Budget of the Republic of Lithuania, as well as the budgets of local governments shall be drawn up and implemented under the laws of the Republic of Lithuania and in accordance with general regulations approved by the Government of the Republic of Lithuania. Article
- A uniform classification of revenues and expenditures, established by the Ministry of Finance of the Republic of Lithuania, shall be applied to the State Budget of the Republic of Lithuania and to the budgets of local governments. Article
- Issues concerning the procedure for the drafting of the budgets of local governments, as well as the financial plans of ministries, independent departments, State enterprises, and institutions of the Republic of Lithuania shall be considered by the Ministry of Finance of the Republic of Lithuania. Article
- Budget operations on a cash basis shall be performed by the Bank of Lithuania through the credit institutions of the Republic. Article
- Information of the Government of the Republic of Lithuania and of executive bodies of local governments on the approved budgets and performance thereof shall be published by state statistical agencies. Information on the approval and performance of the budgets of local governments shall be submitted to the Ministry of Finance of the Republic of Lithuania in accordance with the procedure established by the Government of the Republic of Lithuania. Chapter 2 The State Budget of the Republic of Lithuania Article
- The State Budget of the Republic of Lithuania shall be a centralised fund of financial resources wherein a certain portion of the national revenues of the Republic shall be accumulated and reapportioned. Financial resources accumulated in the State Budget of the Republic of Lithuania shall be used for financing national needs. In addition, reapportionment of financial resources for the needs of local governments shall be performed through the State Budget of the Republic of Lithuania in accordance with the procedure established by this Law and other laws of the Republic. Article
- The sources of revenues of the State Budget of the Republic of Lithuania shall be taxation under the laws of the Republic of Lithuania, and other required payments into the Budget. The following taxes and payments shall be paid to the State Budget of the Republic of Lithuania:
(1)taxes on profits of legal persons;
(2)exise duties (turnover tax);
(3)income tax of individuals;
(4)customs duties;
(5)income received from the exploitation and sale of stateowned property;
(6)payments collected by the traffic control inspectorate; and
(7)other payments. The tax under paragraph 1 hereof shall be paid into the State Budget by legal persons that do not belong to local governments by ownership right. Sums amounting to 20 percent of the profit tax paid by said taxable entities shall be transferred into the budgets of [appropriate] local governments. After required sums of taxes under paragraphs 2 and 3 hereof have been paid to the budgets of [appropriate] local governments, the remaining amounts shall be included in the State Budget. The revenues under paragraph 5 hereof shall be included in the State Budget provided said revenues have been generated from the exploitation and sale of state property. Other payments, specified in paragraph 7, shall be included in the State Budget or in the budgets of local governments according to the procedure established by relevant laws or, in the absence of such, by directives of the Government of the Republic of Lithuania. Article 13. Appropriations from the State Budget of the Republic of Lithuania shall be made for the following national needs:
(1)implementation of educational, cultural, health care and sports programmes;
(2)social welfare and social relief;
(3)scientific research and technological progress;
(4)environmental protection;
(5)regulation of economic development;
(6)national defence;
(7)maintenance of state power, state government and law enforcement institutions;
(8)subsidies to regional and town budgets;
(9)development of the Republic's foreign relations; and
(10)implementation of other measures pursuant to the laws of the Republic of Lithuania. Article
- The State Budget of the Republic of Lithuania shall include the Reserve Fund of the Government of the Republic of Lithuania; the total amount of said Fund shall be established upon approval of the State Budget. On the decision of the Government of the Republic of Lithuania, amounts of the Fund shall be appropriated for expenditures that cannot be provided for upon approval of the Budget (with the exception of expenditures for the maintenance of the administrative organizational structure). Article
- The State Budget of the Republic of Lithuania shall include a working cash balance that shall be formed from the budgetary surplus or, if said amount proves insufficient, from planned budgetary revenues. The amount of the working cash balance shall be established upon approval of the State Budget of the Republic of Lithuania. The working cash balance shall be used to cover temporary cash deficit and must be reimbursed no later than by the end of the current budget year. Article
- The Government of the Republic of Lithuania shall organise the preparation of the State Budget of the Republic of Lithuania. The Draft Budget of the Republic of Lithuania shall be prepared by the Ministry of Finance of the Republic of Lithuania. The Draft Budget of the Republic of Lithuania shall be prepared based on legislative acts of the Republic, information from state statistical agencies, socio-economic programmes and scientific-technolgical projections. Article
- The Government of the Republic of Lithuania shall consider the State Budget of the Republic of Lithuania and submit it to the Supreme Council of the Republic of Lithuania. The Draft Budget shall include the following:
(1)the total amount of the revenues and the apportionment thereof according to the budget items;
(2)the total amount of appropriations and the apportionment thereof for ministries, independent departments, enterprises, and institutions of the Republic of Lithuania, separately indicating social economic programs. The appropriations shall be divided into the estimated expenditures (including payment of wages) and unanticipated expenditures; (Amended 24 September 1992) and
(3)budgetary resources for forming the working cash balance. Article
- The standing committees of deputies of the Supreme Council of the Republic of Lithuania shall consider the Draft Budget of the Republic of Lithuania and prepare relevant proposals and conclusions to be submitted to the Supreme Council of the Republic of Lithuania. Article
- The Supreme Council of the Republic of Lithuania shall consider the Draft Budget of the Republic of Lithuania taking into consideration the report of the Government of the Republic of Lithuania, proposals, and conclusions of the standing committees of the Supreme Council of the Republic of Lithuania, as well as additional information. Article
- The Supreme Council of the Republic of Lithuania shall approve the State Budget of the Republic of Lithuania based on the indices specified by paragraphs 1, 2, and 3 of Article 17 of this Law. The approved State Budget of the Republic of Lithuania shall be enacted as a Law of the Supreme Council of the Republic of Lithuania. Article
- The State Budget of the Republic of Lithuania shall be approved no later than two weeks before the beginning of the budget year. If the State Budget is not approved in a timely manner, the monthly budget outlays at the beginning of the budget year (prior to its approval) may not exceed one twelfth of the State Budget outlays in the prior budget year. Article
- The Government of the Republic of Lithuania shall organise the maintenance of the State Budget through the Ministry of Finance of the Republic of Lithuania and its agencies, as well as through other state institutions and enterprises. Article
- Pursuant to the directives of the Government of the Republic of Lithuania, additional revenues of the State Budget of the Republic of Lithuania received during the current budget year and the amounts of appropriations not applied to a specified purpose shall be used to meet additional national demands. Article
- The Ministry of Finance of the Republic of Lithuania shall prepare a report on the maintenance of the State Budget and submit it to the Government of the Republic of Lithuania in accordance with the procedure established by law and at the prescribed time. Article
- The Government of the Republic of Lithuania shall consider the report on the maintenance of the State Budget and submit it to the Supreme Council of the Republic of Lithuania for approval. The report on the State Budget performance shall be approved on the basis of the indices specified by Article 17 of this Law. Chapter 3 Budgets of Local Governments Article
- The budgets of local governments shall be a constituent part of the State budgetary system of the Republic of Lithuania. The budgets of local governments shall be consist of resources appropriated for financing local socio-economic and other programmes, as well as for operating and maintaining the institutions of local governments. Article
- Each local government of a region, town (under the Republic's jurisdiction), rural territorial unit, settlement, as well as [regional] town shall have its own independent budget. The budgets of local governments must be adopted without deficit. (Amended 2 September 1992) Article
- The sources of revenue of the budgets of local governments shall be:
(1)taxes on profits of legal persons;
(2)excise duties;
(3)income tax of individuals;
(4)income received from the exploitation and sale of property owned by local governments;
(5)land tax;
(6)real estate tax;
(7)motor vehicle duties;
(8)stamp duties;
(9)other payments; and
(10)subsidies. 100 percent of taxes under paragraph 1 hereof shall be paid to the budgets of local governments by the taxable entities in which [appropriate] local governments have property rights; stock companies and private stock companies shall pay to said budgets 50 percent of the above taxes. The tax revenues shall be apportioned among the budgets of the regional local governments and the local governments of the lower level based on the subordination of the economic units to the appropriate Councils. An additional amount equal to 30 percent of the taxes on profits of legal persons paid by the taxable entities in which the [appropriate] local government has no property rights shall be transferred to the budgets of local governments. Regional Councils shall apportion said tax revenues among the budgets of the regional local governments and the local governments of the lower level. (Amended 12 October 1993) The portion (in percentage) of tax revenues under paragraphs 2 and 3 hereof, as established by the Supreme Council of the Republic of Lithuania in accordance with the procedure prescribed by Article 4 of this Law, shall be included in the budgets of towns [under the Republic's jurisdiction] and regions along with the budgets of the local governments of the lower level. The portion (in percentage) of said tax revenues established for regions shall be apportioned among the budgets of the region and of the governments of the lower level by the Councils of the appropriate regions. Tax revenues under paragraph 5 hereof shall be included in the budgets of towns [under the Republic's jurisdiction] or regions, and of local governments of the lower level. Tax revenues under paragraphs 4, 6, 7, 8 and 9 hereof shall be included in the budgets of local governments pursuant to the laws on taxation of the Republic of Lithuania, and in the absence of such -- pursuant to the directives of the Government of the Republic of Lithuania. If under said legislative acts any of the indicated tax revenue is not included in the appropriate budgets, such tax revenue shall be apportioned by the regional Councils. Subsidies under paragraph 10 hereof shall be transferred from the State Budget of the Republic of Lithuania to the budgets of towns [under the Republic's jurisdiction] and regions. Subsidies to the budgets of local governments of the lower level shall be disbursed from the budgets of regions. Article 29. Appropriations from the budgets of local governments shall be applied to:
(1)financing local governments' programmes for education, culture, health care, sports, and environmental protection, as well as for social relief;
(2)developing and regulating the economy of local governments;
(3)maintaining bodies of state power and executive bodies of local governments; and
(4)implementing other programmes pursuant to the laws of the Republic of Lithuania and resolutions of Councils of local governments. Article
- The budgets of local governments shall have a working cash balance that shall be formed from the appropriate budget surplus or, if said amount proves insufficient -- from planned revenues. The amount of the cash balance shall be established upon approval of the budgets of local governments. The working cash balance shall be used to cover temporary cash deficit and must be reimbursed no later than by the end of the current budget year. Article
- Additional revenues of the budgets of local governments received during the current budget year, as well as the amounts of appropriations not applied to a specified purpose shall be placed at the disposal of the local government Councils and, on their decision, shall be used to meet additional demands of [appropriate] local governments. Article
- If the Supreme Council of the Republic of Lithuania, the Government of the Republic of Lithuania, or bodies of local governments of the higher level adopt decisions which bring about changes in the revenues or outlays of the budgets of local governments, appropriate inter-budgetary disbursements shall be made between the State Budget and the budgets of towns (under the Republic's jurisdiction) or regions, as well as between the budgets of regions and the budgets of local governments of the lower level. Article
- Draft budgets of local governments shall be prepared by the executive bodies of the appropriate Councils. Draft budgets of local governments shall be prepared based on legislative acts of the Republic, on portions (in percentage) of revenues from excise duties (turnover tax) and income tax of individuals payable to local budgets as established by the Supreme Council of the Republic of Lithuania or by regional Councils, as well as on information from State statistical agencies, and socio-economic programmes and scientific- technological projections. Article
- The executive bodies of local governments shall submit the prepared draft budgets to the appropriate Councils. Article
- Standing committees of the appropriate Councils shall consider the draft budgets of local governments and prepare proposals and conclusions for the Councils. Article
- Local government Councils shall consider draft budgets taking into consideration reports of executive bodies of the [appropriate] Councils, and proposals and conclusions of standing committees. Article
- The budgets of local governments shall be approved by the appropriate Councils. The approval of the budget shall be enacted by a resolution of the local government Council. The resolution shall indicate:
(1)the total amount of the revenues and the apportionment thereof according to the budget items;
(2)the total amount of appropriations and the apportionment thereof for the one-type enterprises and institutions of the [appropriate] local government, separately indicating social economic programs. The appropriations shall be divided into the estimated expenditures (including payment of wages) and unanticipated expenditures; (Amended 24 September 1992) and
(3)budgetary resources for forming the working cash balance. Article
- The budgets of local governments shall be approved not later than two weeks before the beginning of the following budget year. If the budgets of local governments are not approved in a timely manner, the monthly budget outlays at the beginning of the budget year (prior to its approval) may not exceed one twelfth of the outlays of said budgets of the prior year. Article
- The budget performance of local governments shall be organised by the Boards of [appropriate] local government Councils through administrative bodies formed by said Boards, as well as through other institutions and enterprises subordinate to the Councils. The administrative bodies formed by the Boards of Councils of regions and towns (under the Republic's jurisdiction) shall control the budget performance of local governments. The computation and payment of taxes and other required amounts into the budgets of local governments shall be controlled by state tax inspectorates under the Ministry of Finance of the Republic of Lithuania. Article
- The executives bodies of the Councils of the appropriate local governments shall prepare reports on the budget performance of local governments and submit said reports to the local government Councils for approval. The reports on the budget performance of local governments shall be approved on the basis of the indices specified by Article 37 of this Law. Vytautas Landsbergis President Supreme Council Republic of Lithuania 30 July 1990 No. I-430