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Article 6Article 2Article 18Article 14Article 26

Įstatymas skelbtas: Žin REPUBLIC

LITHUANIA LAW ON THE BUDGET STRUCTURE 30 July 1990 No I-430 (As last amended on 6 November 2012 – No XI-2318) Vilnius CHAPTER ONE GENERAL PROVISIONS *Article 1. Purpose and Objective

the Law 1. The purpose

the Law is to define the contents

the State budget and municipal budgets, the legal grounds for the collection

budgetary revenue and utilisation

budgetary appropriations, also the basic provisions, procedures for the transparent drawing up, approval, implementation, evaluation and control

the budgets, the impact on the entire general government sector, the duties, rights and responsibility

appropriation managers. 2. The objective

the Law shall be to ensure the efficient use

monetary resources in the process

formation and implementation

the budget with a view to attaining a long-lasting and comprehensive economic and social welfare

citizens

the Republic

Lithuania, sustainable long-term economic growth and employment and without posing a threat to price stability. 3. The provisions

this Law have been harmonised with the legal acts

the European Union referred to in the Annex to this Law. *Note. This Article shall apply to drawing up, approval, implementation, evaluation

and reporting for the State budget and municipal budgets

2014 and subsequent years. **Article 1. Purpose and Objective

the Law 1. The purpose

the Law shall be to define the contents

the state budget and municipal budgets

the Republic

Lithuania (hereinafter referred to as the “budget”), the legal grounds for the formation

revenue

these budgets and use

appropriations, also the basic provisions

and procedures for the drawing up, approving, implementing, assessing and controlling the budgets, the duties, rights and responsibility

appropriation managers. 2. The objective

the Law shall be to ensure the efficient use

monetary resources in the process

formation and implementation

the budget with a view to attaining a long-lasting and comprehensive economic and social welfare

citizens

the Republic

Lithuania. **Note. This Article shall apply to implementation, evaluation

and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the State budget and municipal budgets

1. *Article
2. Definitions
3. Increase in working funds shall mean a planned increase in temporarily available financial resources

the State at the close

the budget year as compared to envisaged or actual temporarily available financial resources

the State at the close

the previous budget year. 2. Decrease in working funds shall mean a planned decrease in temporarily available financial resources

the State at the close

the budget year as compared to envisaged or actual temporarily available financial resources

the State at the close

the previous budget year. 3. Appropriations shall mean the amount

resources approved in the State budget or municipal budget for expenses and for acquisition

tangible and intangible fixed assets (hereinafter referred to as “assets”), to which the appropriation manager shall be entitled during the budget year from the funds accumulated in the State budget or municipal budget following the submission

payment requests to the institution managing the State Treasury or to the administration

a municipality for the financing the approved programmes. 4. Appropriations for liabilities shall mean the amount

funds for which (and without exceeding which) the appropriation manager shall have the right to assume liabilities during the current budget year in respect

financing

the projects supported by funds

EU financial support and co-funding. 5. Fiscal discipline shall mean compliance with the procedure for drawing up and implementing budgets specified by this Law and elimination

violations thereof ensuring the consistent funding

functions

the State independently

cyclical fluctuations

the economy. 6. Budget year shall mean a budget period

12 months commencing on 1 January and closing on 31 December. 7. Income

budgetary establishments shall mean the funds received by budgetary establishments performing the functions provided for in the documents regulating their activities (with the exception

state fees and charges and the stamp duty) and receipts from the lease

tangible current and tangible fixed assets used in compliance with laws or resolutions

the Government

the Republic

Lithuania (hereinafter referred to as the “Government”) for financing the programmes carried out by these establishments. 8. Budget balance cyclical component shall mean an indicator expressed in monetary units and showing the impact

output gap on the general government sector balance indicator over the reporting period.

1. Budget deficit shall mean a difference between budget revenue and appropriations, when the appropriations exceed the revenue.
2. Budget surplus shall mean a difference between budget revenue and appropriations, when the revenue exceeds the appropriations.
3. Economic classification

budget revenue and appropriations (hereinafter referred to as “economic classification”) shall mean categorisation

budget revenue and appropriations according to general economic characteristics

the accumulation and allocation

funds. 12. Economic development scenario shall mean a description

economic development which is determined by the assumptions selected and listed by the Ministry

Finance

the Republic

Lithuania (hereinafter referred to as “the Ministry

Finance”), is based on available statistical data and does not contravene national account data and economic regularities and on the basis whereof a draft Law

the Republic

Lithuania on the Approval

the Financial Indicators

the State Budget and Municipal Budgets for a specific year is prepared. 13. Funding shall mean the transfer

funds to accounts

the budgetary establishments and other entities led by appropriation managers for implementation

their programmes or a direct payment

expenditure

programmes

the budgetary establishments and other entities and

the assets being acquired from accounts

state and municipal budgets. 14. Functional classification

appropriations (hereinafter referred to as “functional classification”) shall mean categorisation

appropriations according to state functions. 15. Tax increase risk indicator shall mean the S1 indicator calculated by the European Commission as a share

gross domestic product (hereinafter referred to as “GDP”) at current prices and presented when assessing the Convergence Programme

Lithuania for a specific year in accordance with Article 1

Council Regulation (EC) No 1055/2005

27 June 2005 amending Regulation (EC) No 1466/97 on the strengthening

the surveillance

budgetary positions and the surveillance and coordination

economic policies or the Stability Programme in accordance with Article 1

the Regulation on the Stability and Growth Pact. 16. Programme shall mean a part

a strategic and/or annual activity plan drawn up according to the Strategic Planning Methodology approved by the Government, which pursues the aim

implementing the strategic goal

the manager

appropriations and whose appropriations may be funded from: 1) a specific share

revenue

the state budget or municipal budget, the scope and purpose

the use whereof is indicated by a law, a Government resolution or a decision

a municipal council; 2) the revenue

budgetary establishments; 3) other funds

the State budget, including funds

EU financial support and other international financial support received and/or municipal budgets; 4) other legitimately obtained funds. 17. Programme estimate shall mean a document indicating, according to economic and functional classifications, the amounts

appropriations for the implementation

a programme. 18. Municipal budget shall mean a plan

a municipality's revenue and appropriations for a budget year as approved by a municipal council. 19. Structural indicator

general government sector balance shall mean a general government sector balance indicator adjusted by an economic cycle and referring to the difference between general government revenue and expenditure in the event

actual GDP being equal to potential GDP, where no interim sanctions have been applied. Interim sanctions shall mean the factors not related to cyclical fluctuations

the economy and affecting budget indicators only over the specified period by reducing (or increasing) the general government sector balance indicator or the state debt (one-

f impact) or by improving (or deteriorating) budget positions at the expense

budget positions in the future. 20. State budget shall mean the plan

state budget revenue and appropriations for a budget year as approved by the Seimas

the Republic

Lithuania (hereinafter referred to as the “Seimas”). 21. Other concepts used in this Law shall be interpreted as they are defined in the Law

the Republic

Lithuania on Fiscal Discipline (hereinafter referred to as the “Law on Fiscal Discipline”), the Law

the Republic

Lithuania on Public Sector Accounts (hereinafter referred to as the “Law on Public Sector Accounts”) and the Law

the Republic

Lithuania on State Debt (hereinafter referred to as the “Law on State Debt”). *Note. This Article shall apply to drawing up, approval, implementation, evaluation and reporting for the State budget and municipal budgets

2014 and subsequent years. **Article

1. Definitions
2. Appropriations means the amount

resources approved in the budget for expenses and for acquisition

tangible and intangible fixed assets and strategic stocks (hereinafter referred to as “assets”), to which the appropriation manager shall be entitled during the budget year from the funds accumulated in the budget following the submission

payment requests to the institution managing the State Treasury or to the administration

a municipality for the financing the approved programmes. 2. Appropriations for liabilities shall mean the amount

funds for which (and without exceeding which) the appropriation manager shall have the right to assume liabilities during the current budget year in respect

financing

the projects supported by funds

EU financial support and co-funding. 3. Budget year shall mean a budget period

12 months commencing on 1 January and closing on 31 December. 4. Income

budgetary establishments shall mean the funds received by budgetary establishments performing the functions provided for in the documents regulating their activities (with the exception

state fees and charges and the stamp duty) and receipts from the lease

tangible current and tangible fixed assets used in compliance with laws or resolutions

the Government

the Republic

Lithuania (hereinafter referred to as the “Government”) for financing the programmes carried out by these establishments.

1. Budget deficit shall mean a difference between budget revenue and appropriations, when the appropriations exceed the revenue.
2. Budget surplus shall mean a difference between budget revenue and appropriations, when the revenue exceeds the appropriations.
3. Economic classification

budget revenue and appropriations (hereinafter referred to as “economic classification”) shall mean categorisation

budget revenue and appropriations according to general economic characteristics

the accumulation and allocation

funds. 8. Funding shall mean the transfer

funds to accounts

the budgetary establishments and other entities led by appropriation managers for implementation

their programmes or a direct payment

expenditure

programmes

the budgetary establishments and other entities and

the assets being acquired from accounts

state and municipal budgets. 9. Functional classification

appropriations (hereinafter referred to as “functional classification”) shall mean categorisation

appropriations according to state functions. 10. National budget shall mean the totality

the state budget and municipal budgets (with the exception

the appropriations from the state budget allocated for municipal budgets). 11. Programme shall mean a part

a strategic and/or annual activity plan drawn up according to the Strategic Planning Methodology approved by the Government, which pursues the aim

implementing the strategic goal

the manager

appropriations and may be funded from: 1) a specific share

revenue

the state budget or municipal budgets, the scope and purpose

the use whereof is indicated by a law, a Government resolution or a decision

a municipal council; 2) the revenue

budgetary establishments; 3) other funds

the state budget, including funds

EU financial support and other financial support received and/or municipal budgets; 4) other legitimately obtained funds. 12. Programme estimate shall mean a document indicating, according to economic and functional classifications, the amounts

appropriations for the implementation

a programme. 13. Municipal budget shall mean a plan

a municipality's revenue and appropriations for a budget year as approved by a municipal council. 14. State budget shall mean the plan

state budget revenue and appropriations for a budget year as approved by the Seimas. **Note. This Article shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the State budget and municipal budgets

1. *Article
2. Totality

the State Budget and Municipal Budgets 1. The revenue

the state budget and municipal budgets shall comprise all funds accumulated in the state budget and municipal budgets. Only monetary funds may constitute the revenue and appropriations

the state budget and municipal budgets. 2. Appropriations

the state budget and municipal budgets shall be used for performance

the functions

the State and municipalities. The taxes, compulsory payments, fees and charges and the funds borrowed on behalf

the State and collected in the Republic

Lithuania may be re-allocated only through the state budget and municipal budgets, State Social Insurance Fund, Compulsory Health Insurance Fund, Privatisation Fund, Reserve (Stabilisation) Fund, Ignalina NPP Decommissioning Fund, Guarantee Fund, and municipal privatisation funds. 3. The Seimas shall approve the forecasted indicators

the totality

the state budget and municipal budgets for a period

three budget years (with the exception

the appropriations from the state budget allocated for municipal budgets). *Note. This Article shall apply to drawing up, approval, implementation, evaluation and reporting for the State budget and municipal budgets

2014 and subsequent years. **Article

1. National Budget
2. The revenue

the national budget shall comprise all funds accumulated in the state budget and municipal budgets. Only monetary funds may constitute the revenue and appropriations

the state budget and municipal budgets. 2. Appropriations

the national budget shall be used for performance

the functions

the State and municipalities. The taxes, compulsory payments, fees and charges collected in the Republic

Lithuania may be re-allocated only through the national budget, State Social Insurance Fund, Compulsory Health Insurance Fund, Privatisation Fund, Reserve (Stabilisation) Fund, Ignalina NPP Decommissioning Fund, Guarantee Fund, and municipal privatisation funds. 3. Repealed as

1 January

2. The Seimas

the Republic

Lithuania (hereinafter referred to as the “Seimas”) shall approve the forecasted indicators

the national budget for a period

three years. **Note. This Article shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the State budget and municipal budgets

1. Article
2. Appropriation Managers
3. State budget appropriation managers shall be heads

the establishments indicated in the state budget as approved by the Seimas (in ministries – ministers or the persons authorised by them, in courts – presidents

the courts or the court chancellors authorised by them), provided the establishments led by them conform to at least one condition indicated in paragraph 3

this Article. 2. Managers

municipal budget appropriations shall be heads

municipal budgetary establishments or the administration

a municipality and/or divisions thereof referred to in the municipal budget approved by a municipal council (in the administration

the municipality – the director

the administration or the persons authorised by him, in divisions

the administration

the municipality – heads

the divisions or the persons authorised by them). 3. The establishment whose head is the manager

state budget appropriations shall be: 1) the

fice

the President

the Republic, the

fice

the Seimas, the

fice

the Prime Minister

the Republic

Lithuania, a ministry, a Government agency; 2) an establishment which is accountable to the President

the Republic, the Seimas, the Government or whose head (or the collegial management body) is appointed by the President

the Republic, the Seimas, the Government; 3) the Constitutional Court

the Republic

Lithuania, courts, the National Courts Administration, the Prosecutor General’s

fice

the Republic

Lithuania; 4) a state university, a state scientific research institute or a priest seminary; 5) the Lithuanian National Opera and Ballet Theatre, the Lithuanian National Drama Theatre, the Lithuanian National Philharmonic Hall, the National Museum

Lithuania, the Lithuanian Art Museum, the Mikalojus Konstantinas Čiurlionis National Art Museum, ?, the Martynas Mažvydas National Library

Lithuania, the National Museum Place

the Grand Dukes

Lithuania, the Lithuanian National Radio and Television. 4. The budgetary establishments not conforming to the terms and conditions specified in paragraph 3

this Article may receive budget funds from the appropriations approved for the appropriation manager exercising the rights and duties

the owner

the establishment concerned. These establishments shall be subject to the same provisions as stipulated by this Law for the budgetary establishments subordinate to the appropriation manager. Article 5. Duties

Appropriation Managers and Heads

Agencies within the Areas

Management

Ministers Carrying out Programmes

the Respective Appropriation Manager and Having Subordinate Budgetary Establishments 1. Budget appropriation managers must: 1) use the allocated appropriations for implementation

programmes

the establishment led by them, distribute them for the purpose

implementation

programmes among subordinate budgetary establishments and other entities which are eligible for budget funds under the laws regulating their area

management or under the Government resolutions adopted in compliance with directly applicable EU legal acts and treaties stipulating the procedure for administering financial support granted to Lithuania by the European Union or individual states; 2) organise the drafting and implementation

the programmes financed from a budget; 3) determine and approve estimates

programmes

a budgetary establishment led by them and/or subordinate budgetary establishments and other entities according to the economic classification and within the limits

the total appropriations approved for these programmes, including appropriations for expenditure, which shall include payroll expenditure, and for the acquisition

assets; 4) in accordance with the procedure and within the time limits laid down by the Republic

Lithuania Law on Financial Statements

the Public Sector, submit sets

reports; 5) control and meet liabilities

the budgetary establishments led by them, carry out an analysis

the sets

reports

subordinate budgetary establishments and other entities submitted under the Law on Public Sector Accounts; 6) ensure the accuracy

the sets

reports submitted under the Law on Public Sector Accounts and statistical reports and their timely submission; 7) ensure the legitimacy, cost-effectiveness, efficiency and effectiveness

implementation

programmes and use

the allocated appropriations. 2. Heads

agencies within the areas

management

ministers carrying out programmes

the respective appropriation manager and having subordinate budgetary establishments must: 1) use the budget funds allocated to them by the appropriate manager

appropriations (a minister or a person authorised by him) according to the specified purpose, distribute them among subordinate budgetary establishments for implementation

programmes; 2) organise the drafting and implementation

the programmes financed from a budget; 3) determine and approve estimates

programmes

subordinate budgetary establishment according to the economic classification and within the limits

the total appropriations allocated to these programmes by the appropriation manager, including appropriations for expenditure, which shall include payroll expenditure, and for the acquisition

assets; 4) in accordance with the procedure and within the time limits laid down by the Republic

Lithuania Law on Financial Statements

the Public Sector, submit sets

reports to the manager

appropriations; 5) control and meet liabilities

the agency led by them, carry out an analysis

the sets

reports

subordinate budgetary establishments submitted under the Law on Public Sector Accounts; 6) ensure the accuracy

the sets

reports submitted under the Law on Public Sector Accounts and statistical reports and their timely submission to the manager

appropriations; 7) ensure the legitimacy, cost-effectiveness, efficiency and effectiveness

implementation

programmes and use

the funds allocated for implementation

the programmes. Article 6. Rights

Appropriation Managers The manager

budget appropriations shall have the right: 1) during the budget year and not later than ten days prior to the end

an appropriate quarter, to change the purpose

the approved budget appropriations according to the economic classification as earmarked for programmes

the agency headed by him, the budgetary establishments subordinate to him and other entities (the manager

state budget appropriations shall, in accordance with the procedure laid down by the Government, notify thereof the Ministry

Finance, and the manager

municipal budget appropriations – a municipality administration in accordance with the procedure laid down by it) not exceeding the amounts

total appropriations for expenditure, including payroll expenditure, as approved for a certain programme. The amounts

appropriations for expenditure, including payroll expenditure, shall represent the upper limit, and saved funds, unless there are any debts, may be used for the acquisition

assets and additional funding

investment projects to which funds are to be earmarked in a state investment programme

the year concerned or in municipal budgets; 2) during the budget year and once per quarter, to change the quarterly allocation

the total amount

appropriations for the implementation

a programme, subject to co-ordination with the Ministry

Finance (the manager

state budget appropriations) or with a municipal administration (the manager

municipal budget appropriations); 3) when drafting programmes and drawing up estimates for the programmes, to submit alternative programmes and estimates thereof (the manager

state budget appropriations – to the Ministry

Finance, whereas the manager

municipal budget appropriations – to an appropriate municipal administration); 4) in order to cover liabilities, to allocate funds from the total saved amount

approved appropriations for expenditure (with the exception

funds

EU financial support and other financial support as well as co-funding) without altering approved estimates irrespective

allocation

the appropriations according to functions and programmes; 5) to specify the rights referred to in subparagraphs 1-4

this Article to heads

agencies within the areas

management

ministers carrying out programmes

the respective appropriation manager and having subordinate budgetary establishments and give a notice thereof to the Ministry

Finance. Article 7. Responsibility

Appropriation Managers The managers

budget appropriations and heads

the budgetary establishments subordinate to agencies within the areas

management

ministers carrying out programmes

the respective appropriation manager and heads

other entities shall be responsible, in accordance with the procedure laid down by law, for: 1) the implementation

programmes, drawing up and implementation

estimates

the programmes within the limits

the approved amounts

appropriations (in compliance with subparagraph 5

Article 6

this Law), for the efficient and effective use

the allocated appropriations corresponding to the programme goals; 2) settlements with employees, tax administration institutions, suppliers

all types

energy and other works, services and goods, with the exception

the cases

a failure

timely payment

the applications submitted to the State Treasury and municipal administrations for the allocation

appropriations; 3) organisation

accounting, drawing up and submission

sets

reports in compliance with the Law on Public Sector Accounts and the requirements set forth by other legal acts. Article 8. Legal Basis for the Drawing up and Implementation

a Budget 1. The Constitution

the Republic

Lithuania, this Law, the Law on Fiscal Discipline, the Statute

the Seimas, the Law on the Methodology

Determination

Municipal Budgetary Revenues, a Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets for the corresponding year, the Rules for Drawing up and Implementation

Budgets as approved by the Government as well as other legal acts regulating receipt

budget revenue and funding

programmes shall constitute the legal basis for the drawing up

a budget. 2. The decisions on the approval

municipal budgets for an appropriate budget year taken by appropriate municipal councils shall constitute the legal basis for municipal budgets. 3. The legal basis for the use

the appropriations allocated to the budgetary establishments and other entities subordinate to the managers

budget appropriations shall be the estimates

programmes

the said establishments as approved by the appropriation managers. 4. Estimates

programmes

budgetary establishments subordinate to heads

agencies within the areas

management

ministers carrying out the programmes

the respective appropriation manager, as approved by the said heads, shall be the legal basis for the use

funds allocated to these establishments. *5. The issues

the methodology

drawing up and implementation

the state budget and municipal budget shall be specified by the Ministry

Finance to the extent that they are not regulated by laws and Government resolutions. *Note. This paragraph shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **5. The issues relating to the methodology

the drawing up and implementation

the national budget shall fall within the remit

the Ministry

Finance. **Note. This paragraph shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the state budget and municipal budgets

1. Article
2. Classification

Budget Revenue and Appropriations The economic and functional classification

budget revenue and appropriations shall be established by the Ministry

Finance. *Article

1. Borrowing by Municipalities
2. Municipalities may, within the borrowing limits approved by the Seimas and in accordance with the procedure laid down by the Government: 1) take out long-term loans (with the maturity

more than one year and repayable not in the same budget year) from domestic or foreign creditors or grant guarantees for the loans used solely for the funding

investment projects; 2) take out short-term loans (with the maturity in the same budget year) from domestic or foreign creditors for covering

a temporary shortfall

revenue during the budget year, when the amount

the working funds

a municipal budget proves insufficient for the purpose. 2. Municipalities may be granted, in accordance with to the procedure laid down by the Government, short-term loans from the working funds

the state budget, when the working funds

a municipal budget have been used for covering a temporary shortfall

revenue. 3. Municipalities may be granted, in accordance with to the procedure laid down by the Government, short- or long-term loans from the working balance

the state budget, when the municipalities cannot dispose

their funds due to a moratorium on the activities

credit institutions and/or withdrawal

licences thereof and hence lack working funds. 4. Budgetary establishments may not borrow funds or assume any liabilities in their own name. *Note. This Article shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **Article

1. Borrowing by Municipalities
2. Municipalities may, within the borrowing limits approved by the Seimas and in accordance with the procedure laid down by the Government: 1) take out long-term (with the maturity

more than one year and repayable not in the same budget year) loans from domestic or foreign creditors or grant guarantees for the loans used solely for the funding

investment projects; 2) take out short-term loans (with the maturity in the same budget year) from domestic or foreign creditors for covering

a temporary shortfall

revenue during the budget year, when the amount

the working funds

a municipal budget proves insufficient for the purpose. 2. Municipalities may be granted, in accordance with to the procedure laid down by the Government, short-term loans from the state budget for covering a temporary shortfall

revenue, when the amount

the working funds

a municipal budget proves insufficient for the purpose. 3. Municipalities may be granted, in accordance with to the procedure laid down by the Government, short- or long-term loans from the working balance

the state budget, when the municipalities cannot dispose

their funds due to a moratorium on the activities

credit institutions and/or withdrawal

licences thereof and hence lack working funds. 4. Budgetary establishments may not borrow funds or assume any liabilities in their own name. **Note. This Article shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the State budget and municipal budgets

1. Article
2. Publicity

Information on Budgets 1. Information on the drawing up, adoption, implementation, evaluation and control

a budget must be transparent and accessible to the public, with the exception

the information which constitutes a State secret in accordance with the procedure laid down by laws. 2. Information on the approved state budget, revenue and appropriations thereof, and their implementation shall be published in the

ficial gazette Valstybės žinios and on the website

the Ministry

Finance. 3. Information on approved municipal budgets and implementation thereof shall be published by the director

a municipal administration in the local press. Article 12. Requirements for Adoption

Other Legal Acts The tax laws, other laws and legal acts and amendments thereto which affect the budget revenue, appropriations and the state debt

an appropriate year shall enter into force as prescribed by law, but shall be adopted not later than a Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets for that budget year. CHAPTER TWO STATE BUDGET Article 13. Revenue

the State Budget 1. Revenue

the state budget shall comprise: 1) the tax revenue received into the state budget according to laws and other legal acts; 2) the revenue received from State-owned property (with the exception

the revenue received under the Law on Privatisation

State-owned and Municipal Property and the immovable property sold by the organiser

renovation

the State-owned immovable property as specified in Article 16

the Law on Management, Use and Disposal

the State-owned and Municipal Property, with the exception

land); 3) revenue

state budgetary establishments; 4) non-repayable financial support (monetary funds); 5) grants; 6) other income. 2. State budget revenue shall include payments from the sale

tangible and intangible fixed assets, with the exception

the case specified in Article 16

the Law on Management, Use and Disposal

the State-owned and Municipal Property, namely, in the event

renovation

State-owned immovable property. *Article 14. Appropriations

the State Budget 1. Appropriations

the state budget shall be used in accordance with laws: 1) for the performance

state functions; 2) for the provision

grants to municipal budgets; 3) for the discharge

state obligations. 2. Unused payments into the respective budget referred to in subparagraph 1

paragraph 16

Article 2

this Law and intended for the funding

programmes shall be carried forward to the next budget year and shall remain with appropriation managers as well as may be used in excess

the total amounts

appropriations approved by the Seimas. 3. An unused part

the state budget revenue indicated in subparagraph 2

paragraph 16

Article 2

this Law may be carried forward to the next budget year and used for funding

programmes in excess

the total amounts

appropriations approved by the Seimas: 1) if this part does not exceed ¼

the annual amount

payments; 2) the entire amount, if all the programmes

the appropriation manager are financed solely from the state budget funds indicated in subparagraph 2

paragraph 16

Article 2

this Law. 4. Excess payments into the state budget or municipal budget from the revenue referred to in subparagraphs 1 and 2

paragraph 16

Article 2

this Law during the current budget year shall remain with appropriation managers and may be used in excess

the total amounts

appropriations approved by the Seimas for the funding

programmes. *Note. This Article shall apply to drawing up, approval, implementation, evaluation and reporting for the State budget and municipal budgets

2014 and subsequent years. **Article 14. Appropriations

the State Budget 1. Appropriations

the state budget shall be used in accordance with laws: 1) for the performance

state functions; 2) for the provision

grants to municipal budgets; 3) for the discharge

state obligations. 2. Unused payments into the respective budget referred to in subparagraph 1

paragraph 11

Article 2

this Law and intended for the funding

programmes shall be carried forward to the next budget year and shall remain with appropriation managers as well as may be used in excess

the total amounts

appropriations approved by the Seimas. 3. An unused part

the state budget revenue indicated in subparagraph 2

paragraph 11

Article 2

this Law may be carried forward to the next budget year and used for funding

programmes in excess

the total amounts

appropriations approved by the Seimas: 1) if this part does not exceed ¼

the annual amount

payments; 2) the entire amount, if all the programmes

the appropriation manager are financed solely from the state budget funds indicated in subparagraph 2

paragraph 11

Article 2

this Law. 4. Excess payments into the budget from the revenue referred to in subparagraphs 1 and 2

paragraph 11

Article 2

this Law during the current budget year shall remain with appropriation managers and may be used in excess

the total amounts

appropriations approved by the Seimas for the funding

programmes. **Note. This Article shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the State budget and municipal budgets

1. Article
2. Government Reserve Funds
3. The Government Reserve shall be formed in the state budget. It may not exceed 1%

the amount

approved state budget appropriations. The specific amount

the Government Reserve shall be determined by the Seimas on an annual basis by the Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets. The funds

the Government Reserve shall be allocated by a Government resolution. 2. The funds

the Government Reserve shall be used: 1) to ensure emergency and/or emergency event response, mitigation

consequences thereof and partial compensation for the losses incurred, 2) to discharge obligations relating to participation in international operations; 3) to ensure execution

arbitral awards or court judgments awarding payments from the State

Lithuania, also to cover other expenses incurring when defending the interests

the State; 4) to cover the burial expenses

well-known Lithuanian public figures; 5) to provide humanitarian aid. 3. The procedure for allocating and using the funds

the Government Reserve shall be laid down by the Government. *Article 16. Repealed as

31 October 2012. *Note. This Article shall apply to drawing up, approval, implementation, evaluation and reporting for the State budget and municipal budgets

2014 and subsequent years. **Article 16. Working Funds

the State Budget 1. The working funds

the state budget shall be formed from the balance

budget funds or, when the said amount proves insufficient, from budget revenue. 2. Working funds shall be used for repayment

the remaining amounts

unused funds for programmes as referred to in subparagraphs 1 and 2

paragraph 11

Article 2

this Law and covering

shortfalls

budget funds. **Note. This Article shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the State budget and municipal budgets

1. *Article
2. Basic Principles

Preparation

a Draft State Budget and Draft Financial Indicators

Municipal Budgets and Formation

the General Government Sector Balance Indicator 1. A draft state budget and draft financial indicators

municipal budgets shall be prepared by the Ministry

Finance. 2. A draft

forecasted indicators

the totality

the state budget and municipal budgets for a period

three budget years shall be prepared on the basis

the Government Programme, the Convergence Programme

Lithuania, the State Progress Strategy (until the entry into force

this strategy – the Long-term Development Strategy

the State approved by the Seimas), the National Programme for the Advancement

Lithuania, other planning documents approved by the Seimas and the Government, this Law, the Law on Fiscal Discipline, other laws and other legal acts, the country’s medium-term economic development scenario, EU financial support strategic documents, strategic plans

activities

appropriation managers and preliminary basic indicators

the state budget and municipal budgets as approved by the Government approved by the Government, also the programmes submitted by managers

state budget appropriations and draft estimates

the programmes. 3. A draft

the state budget for a specific year and draft financial indicators

municipal budgets may derogate from the forecasted indicators

the totality

the state budget and municipal budgets for a period

three budget years as approved by the Seimas only in the case when the Government submits to the Seimas a written clarification

how new economic policy priorities are reflected in the changes. 4. The medium-term general government sector balance indicators specified by a draft law on the approval

the financial indicators

the state budget and municipal budgets for a specific year shall be submitted to the Seimas under a resolution

the Government on the compliance

the financial indicators

the state budget and municipal budgets with the valid recommendations and opinion

the Council

the European Union on the Convergence Programme

Lithuania and likely additional measures (hereinafter referred to as the “Conclusions”). The Conclusions must indicate the main preconditions for an economic development scenario and the target medium-term impact on price stability, sustainability

the Lithuanian payment balance current account, risk-related bonus interest, employment, future tax increase risks and the prospects

achieving general government surplus over the medium term. *Note. This Article shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **Article 17. Basic Principles

Drafting Financial Indicators

the State Budget and Municipal Budgets 1. Draft financial indicators

the state budget and municipal budgets shall be prepared by the Ministry

Finance. 2. The state budget shall be drafted for a period

three budget years based on the Government programme, the State Progress Strategy (until the entry into force

this strategy – the Long-term Development Strategy

the State approved by the Seimas), the National Programme for the Advancement

Lithuania, other planning instruments approved by the Seimas and the Government, this Law, the Law on Fiscal Discipline, other laws and other legal acts, macro-economic forecasts

the country’s economic development, strategic documents

EU financial support, strategic plans

activities

appropriation managers and the preliminary basic indicators

the national budget as approved by the Government, also the programmes and draft estimates

the programmes submitted by managers

state budget appropriations. 3. Repealed as

1 January 2011. **Note. This Article shall apply to implementation, evaluation and reporting for the state budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the state budget and municipal budgets

1. *Article
2. Together with a draft Law

the Republic

Lithuania on the Approval

Financial Indicators

the State Budget and Municipal Budgets for a specific year, the Government shall submit to the Seimas: 1. The Government shall submit a draft Law

the Republic

Lithuania on the Approval

the Financial Indicators

the State Budget and Municipal Budgets for a specific year to the Association

Local Authorities in Lithuania to the Seimas not later than 75 calendar days prior to the close

the budget year. Before submitting the draft to the Seimas, the Government shall submit it to the Association

Local Authorities in Lithuania. 2. The draft Law

the Republic

Lithuania on the Approval

Financial Indicators

the State Budget and Municipal Budgets for a specific year shall approve the state budget and the financial indicators

municipal budgets, that is, the draft shall specify: 1) the total amount

revenue and allocation thereof according to the types

revenue; 2) allocation

state budget revenue indicated in points

Article 2

this Law (with the exception

funds

EU financial support and other funds

international financial support) intended for the funding

programmes according to appropriation managers; 3) the total amount

appropriations from the state budget, allocation thereof according to appropriation managers for the implementation

programmes. The appropriations shall be allocated for expenditure, including payroll expenditure, and for the acquisition

assets, with the exception

state schools

higher education, to which the appropriations shall be allocated without separating wages and salaries; 4) limit for net change in debt liabilities and a share thereof allocated for accumulation

monetary funds intended for debt repayment; 5) limit

the state guarantees issued during the budget year; 6) amounts

the grants awarded to municipal budgets, compensatory amounts

the general grant; 7) borrowing limits

municipalities; 8) share

the personal income tax (in per cent) per budgets

all municipalities according to revenue into the consolidated state budget and municipal budgets, with the exception

the fixed amount

personal income tax on the income derived from the activities pursued under a business certificate; 9) medium-term objectives

annual improvement in terms

the general government sector balance indicator; 10) the amount

monetary resources

the State to be allocated for increase

working funds, where such an increase is planned at the close

the budget year, and the circumstances and derogations permitting to diverge from the plan. 3. The draft Law

the Republic

Lithuania on the Approval

the Financial Indicators

the State Budget and Municipal Budgets for a specific year may contain provisions limiting the right to assume obligations to use budget funds. *Note. This Article shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **Article 18. Submission

a Draft Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets to the Seimas 1. The Government shall submit to the Seimas a draft Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets for the corresponding year not later than 75 calendar days prior to the close

the budget year. Before submitting the draft to the Seimas, the Government shall submit it to the Association

Local Authorities in Lithuania. 2. A draft Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets shall establish: 1) the total amount

revenue and allocation thereof according to the types

revenue; 2) allocation

state budget revenue indicated in points

Article 2

this Law (with the exception

funds

EU financial support and other funds

financial support) intended for the funding

programmes according to appropriation managers; 3) the total amount

appropriations from the state budget, allocation thereof according to appropriation managers for the implementation

programmes. The appropriations shall be allocated for expenditure, including payroll expenditure, and for the acquisition

assets, with the exception

state schools

higher education, to which the appropriations shall be allocated without separating wages and salaries; 4) limit for net change in debt liabilities; 5) limit

the state guarantees issued during the budget year; 6) amounts

the grants awarded to municipal budgets, compensatory amounts

the general grant; 7) borrowing limits

municipalities; 8) share

the personal income tax (in per cent) per budgets

all municipalities according to revenue into the national budget, with the exception

the fixed amount

personal income tax on the income derived from the activities pursued under a business certificate. 3. A draft Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets for the corresponding year may contain the provisions limiting the right to assume obligations to use budget resources. **Note. This Article shall apply to implementation, evaluation and reporting for the state budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the state budget and municipal budgets

1. *Article
2. Documents Submitted to the Seimas together with a Draft Law

the Republic

Lithuania on the Approval

Financial Indicators

the State Budget and Municipal Budgets for a Specific Year 1. Together with a draft Law

the Republic

Lithuania on the Approval

Financial Indicators

the State Budget and Municipal Budgets for a specific year, the Government shall submit to the Seimas: 1) the explanatory note to the draft Law

the Republic

Lithuania on the Approval

Financial Indicators

the State Budget and Municipal Budgets for a specific year, which shall also publish comprehensive information concerning the impact

tax expenditure on the revenue and the funds which, under Article 14

this Law, are planned to be carried from another budget year, when they remain with the appropriation manager to be used in excess

the total amount

appropriations approved by the Seimas. The Government shall present projections regarding all the main government sector expenditure and revenue lines adjusting the share

central government and the social protection level, covering the budget year and the period

three subsequent years and based on the presumption that the economic policy will not change; a description

the projected medium-term economic policy affecting government sector funding according to the main revenue and expenditure lines, demonstrating the ensuring

the adjustment

the government sector balance indicator with a view to attaining medium-term budget objectives, against with the projections based on the presumption that the economic policy will not change; 2) draft allocation

state budget appropriations by programmes, subject to approval by the Government; 3) data on the total amount

the intended borrowing by the Government on behalf

the State in domestic and foreign markets; 4) information about the evaluation criteria presented in appropriation managers’ strategic action plans; 5) an interpretation

how new priorities

economic policy are reflected in changes, in the event

a deviation from the key financial indicators

the state budget and municipal budgets for three budget years as approved by the Seimas; 6) the documents specified by other laws and other legal acts. 2. Having submitted a draft Law

the Republic

Lithuania on the Approval

Financial Indicators

the State Budget and Municipal Budgets for a specific year, the Government shall, within ten working days, submit to the Seimas: 1) the latest opinion as published by the Council

the European Union on the Convergence Programme

Lithuania or the Stability Programme and, in the event

application

the excessive deficit procedure, the relevant recommendations

the Council

the European Union addressed to the Republic

Lithuania, with a view to rectifying the excessive deficit

the general government sector; 2) conclusions

the Government on the expediency

implementation

the latest recommendations and/or opinion

the Council

the European Union. The grounds for adoption

such conclusions shall be submitted to the Seimas by the Minister

Finance; 3) a list

measures proposed by the Government for a partial or full implementation

the latest recommendations and/or proposals

the Council

the European Union; 4) the general government sector balance indicators specified by a draft Law

the Republic

Lithuania on the Approval

Financial Indicators

the State Budget and Municipal Budgets for a specific year and serving as a basis for implementing the commitments

the Republic

Lithuania to the European Union or seeking general government surplus. The general government sector balance indicator

each year shall be estimated as a percentage

GDP at current prices; 5) the medium-term structural indicators

the general government balance specified by a draft Law on the Approval

the Financial Indicators

the State Budget and Municipal Budgets and calculated according to the submitted draft Law

the Republic

Lithuania on the Approval

the Financial Indicators

the State Budget and Municipal Budgets for a specific year and based on the latest data on Lithuania’s output gap as published by the European Commission in the course

drafting the Law and the budget balance cyclical component; 6) a list and estimation

potential deviations which may arise in the medium term due to expected fiscal risk. The fiscal risks

each year shall be estimated as a percentage

GDP at current prices; 7) data on the change in prospects

long-term sustainability

the government sector assessed according to the tax increase risk indicator and its changes based on new data published by the European Commission in the course

drafting a Law

the Republic

Lithuania on the Approval

Financial Indicators

the State Budget and Municipal Budgets for a specific year; 8) a list

reclassifications in the state budget and municipal budgets required for calculation

the general government sector balance indicator under the European System

Accounts; when evaluating the draft state budget and the draft financial indicators

municipal budgets, only the reclassifications in the state budget and municipal budgets whose value exceeds 0.1%

GDP at current prices shall be submitted. 3. The Bank

Lithuania shall, not later than within 15 working days

submission to the Seimas

the draft Law

the Republic

Lithuania on the Approval

Financial Indicators

the State Budget and Municipal Budgets for a specific year, provide conclusions on the impact

implementation

annual improvement objectives in respect

the general government sector balance indicator on confidence in the stability

the financial system and on price stability paying particular attention to external economic balance and long-term sustainability

public finances. *Note. This Article shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **Article 19. Documents Submitted to the Seimas Together with a Draft Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets Together with a draft Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets for the corresponding year, the Government shall submit to the Seimas: 1) explanatory notes to the draft Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets; 2) draft allocation

state budget appropriations according to functions and programmes, subject to approval by the Government; 3) data on the postponement

defaulted financial obligations

the debtors who have been granted loans on behalf

the State or with the State guarantee; 4) data on the total amount

the intended borrowing by the State from foreign and domestic creditors; 5) information about the evaluation criteria presented in appropriation managers' strategic action plans; 6) other documents prescribed by laws and other legal acts. **Note. This Article shall apply to implementation, evaluation and reporting for the state budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the state budget and municipal budgets

1. Article
2. Consideration and Adoption

a Draft Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets by the Seimas and Entry into Force

the Law 1. The Seimas shall consider a draft Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets having regard to the proposals and conclusions as well as additional reports by committees

the Seimas in accordance with the procedure laid down in the Statute

the Seimas. 2. The Seimas shall approve the state budget and financial indicators

municipal budgets for one budget year by a law not later than 14 calendar days prior to the beginning

the budget year. In the event

a failure to timely adopt a draft Law on the Approval

Financial Indicators

the State budget and Municipal Budgets, the budget shall be implemented in accordance with the procedure laid down in Article 29

this Law. 3. The state budget shall be approved according to the indicators specified in paragraph 2

Article 18

this Law. *4. A Law

the Republic

Lithuania on the Approval

Financial Indicators

the State Budget and Municipal Budgets for a specific year may also approve other indicators not specified in Article 18

this Law. *Note. This paragraph shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **4. A Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets for the corresponding year may also approve other indicators not specified in paragraph 2

Article 18

this Law. **Note. This paragraph shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the state budget and municipal budgets

1. *
2. The Law

the Republic

Lithuania on the Approval

Financial Indicators

the State Budget and Municipal Budgets for a specific year may establish restrictions

the amounts

monthly state budget appropriations (with the exception

a share

programme appropriations consisting

the funds

EU financial support and co-funding as well as other international financial support received). *Note. This paragraph shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **5. A Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets for the corresponding year may establish restrictions

the amounts

monthly state budget appropriations (with the exception

a share

programme appropriations consisting

the funds

EU financial support and co-funding as well as other financial support received). **Note. This paragraph shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the state budget and municipal budgets

1. *
2. When passing a Law

the Republic

Lithuania on the Approval

Financial Indicators

the State Budget and Municipal Budgets for a specific year or a law amending the Law, the Seimas

the Republic

Lithuania shall have regard to the latest effective recommendations and the opinion

the Council

Ministers

the European Union on Lithuania’s convergence programme. *Note. This paragraph shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. SECTION THREE MUNICIPAL BUDGETS Article

1. Municipal Budgets
2. Municipal budgets shall accumulate the funds necessary for performing the functions assigned by laws and the State functions delegated to municipalities by laws.
3. Each municipality shall have an autonomous budget. *
4. The deficit

the municipal budget may not exceed the amount

expenditure, as planned for this year, from the funds borrowed (not exceeding the limits on borrowing by municipalities approved by the Law

the Republic

Lithuania on the Approval

the Financial Indicators

the State Budget and Municipal Budgets for a specific year) for funding

investment projects. The budget

each municipality whose budget expenditure in terms

cash flows exceeds 0.3%

GDP for the preceding year at current prices shall be implemented so that the expenditure for the budget year in terms

liabilities does not exceed nominal revenue in terms

liabilities, with the exception

expenditure for funding

investment projects. *Note. This paragraph shall apply after 1 January 2013. **3. The deficit

the municipal budget approved in the appropriate year may not exceed the amount

expenditure, as planned for this year, from the funds borrowed (not exceeding the limits on borrowing by municipalities approved by the Law on the Approval

the Financial Indicators

the State Budget and Municipal Budgets for the year concerned) for funding

investment projects. **Note. This paragraph shall apply until 31 December 2012. Article 22. Revenue

Municipal Budgets 1. The revenue

municipal budgets shall comprise: 1) the tax revenue received into municipal budgets according to laws and other legal acts; 2) the revenue received from municipal property (with the exception

the revenue received under the Law on Privatisation

State-Owned and Municipal Property); 3) revenue

municipal budgetary establishments; 4) the income received for the State-owned land leased or granted for use, water bodies

the state inland water stock and upon allocation, in accordance with the procedure laid down by the Government,

funds for plots

State-owned land sold for non-agricultural purposes; 5) grants from the state budget and other transfers; 6) non-repayable financial support (monetary funds); 7) other income established by laws. 2. Municipal budget revenue shall include payments from the sale

tangible and intangible fixed assets. Article 23. Appropriations

Municipal Budgets Appropriations

municipal budgets shall be used for implementation

the Law on Local Self-government and other laws in carrying out the programmes approved by managers

municipal budget appropriations. *Article 24. Working Funds

the Municipal Budget 1. The working funds

the municipal budget shall be formed from the balance

municipal budget funds or, when the said amount proves insufficient, from budget revenue. 2. The working funds

the municipal budget shall be used in accordance with the procedure established by municipal councils. *Note. This Article shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **Article 24. Working Funds

Municipal Budgets 1. The working funds

municipal budgets shall be formed from the balance

municipal budget funds or, when the said amount proves insufficient, from budget revenue. 2. Working funds shall be used in accordance with the procedure established by municipal councils. **Note. This Article shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the state budget and municipal budgets

1. Article
2. Reserve

the Director

Municipal Administration 1. Municipalities may form the reserve

the director

municipal administration, which may not exceed 1%

the amount

approved municipal budget appropriations. The specific amount

the reserve

the director

municipal administration shall be established on an annual basis by a municipal council when approving the municipal budget for the corresponding year. Funds

the reserve

the director

municipal administration shall be allocated by the director

municipal administration. 2. Funds

the reserve shall be used only for meeting the needs that cannot be foreseen at the time

drawing up and approving a municipal budget. These funds shall be used for emergency response and for other needs in accordance with the rules established by municipal councils. Version

paragraph 2 as

1 January 2013: 2. Funds

the reserve

the director

municipal administration shall be used solely to ensure emergency and/or emergency event response, mitigation

consequences thereof and partial compensation for the losses incurred in accordance with the procedure laid down by municipal councils. Article 26. Drawing-up and Approval

Municipal Budgets 1. Draft municipal budgets shall be prepared by the executive bodies

municipalities on the basis

this Law, other laws, the financial indicators

municipal budgets as approved by the Seimas, the Rules for the Drawing up and Implementation

Budgets as approved by the Government, national statistical data, social and economic programmes, also programmes

managers

municipal budget appropriations and their draft estimates. 2. The executive bodies

municipalities shall submit the prepared draft budgets to municipal councils in accordance with the procedure laid down by the rules

procedure

the municipal councils. 3. Municipal councils shall consider draft budgets having regard to reports

executive bodies

municipalities, recommendations and conclusions

council committees. 4. Municipal budgets shall be approved by municipal councils. A budget shall be approved by a decision

a municipal council. The decision shall indicate: 1) the total amount

revenue and allocation thereof according to the types

revenue; 2) the total amount

appropriations and allocation thereof to budgetary establishments or divisions

municipal administration for implementation

programmes. The appropriations shall be allocated for expenditure, including pay-roll expenditure, and for the acquisition

assets; 5. Municipal councils shall approve budgets within two months after the approval

financial indicators

the state budget and municipal budgets. In the event

a failure to timely approve draft municipal budgets, the budgets shall be implemented in accordance with the procedure laid down in Article 29

this Law. 6. Directors

municipal administrations shall submit approved budgets and estimates

the privatisation fund

municipalities to the Ministry

Finance. 7. In the event

a failure by a municipality to timely approve a budget, funds from the state budget to the appropriate municipality shall be temporarily suspended until the approval

the budget. CHAPTER FOUR IMPLEMENTATION

BUDGETS Article 27. Organisation

Implementation

a Budget and the Institutions Implementing the Budget 1. Implementation

the state Budget shall be organised by the Government. 2. Implementation

cash operations

the state budget shall be organised by the Ministry

Finance through credit institutions

the Republic

Lithuania. 3. Implementation

municipal budgets shall be organised by directors

municipal administrations. 4. Implementation

cash operations

municipal budgets shall be organised by municipal administrations through credit institutions

the Republic

Lithuania. 5. Calculation and payment

taxes and other non-tax revenue into the State and municipal budgets shall be controlled by the institutions authorised by laws. Article 28. Entry

Revenue and Appropriations 1. Payments shall be entered in the revenue

the budgets

a specific year if they are received into the collection accounts

the State Tax Inspectorate, accounts

the Customs Department, also the accounts

the State Treasury and municipal budgets to which payers transfer their payments directly by 31 December inclusively. 2. The amounts subject to be transferred, where the execution

payment orders for them had to be commenced by 31 December inclusively, shall be included in the used appropriations

the budgets

a specific year. 3. Penalties for administrative

fences shall be entered in the budget from which an institution or agency whose authorised

ficer has drawn up a report

an administrative

fence or imposed and/or received the penalty without drawing up the report

the administrative

fence in the cases specified by Article 262

the Code

Administrative

fences

the Republic

Lithuania. Article 29. Implementation

a Budget Which has not been Approved In the event

a failure to timely approve a budget, monthly appropriations at the beginning

the year until the approval

budgets may not exceed 1/12

the last year's appropriations

these budgets. In such a case, the monthly appropriations

every appropriation manager may not exceed 1/12

the funds allocated to this appropriation manager from the last year's relevant budget and shall be intended only for the funding

continuous activities and the liabilities established by laws (with the exception

a part

programme appropriations consisting

funds

EU financial support and co-funding as well as other financial support received) as well as covering

debts. Article 30. Use

Revenue Received by a Budget in Excess

the Plan *1. The revenue received in excess

the plan while implementing the state budget (in light

Article 14

this Law) shall be used for supplementing the temporarily available financial resources

the State allowing to exceed the planned amount

increase in working funds or respectively not to implement the planned decrease in working funds. *Note. This paragraph shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **1. The revenue received in excess

the plan while implementing the state budget (in light

Article 14

this Law) shall be used for supplementing the working capital

the state budget and for covering the shortfalls

municipal budget revenue. **Note. This paragraph shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the state budget and municipal budgets

2. The municipal budget revenue received in excess

the plan (excluding the revenue received in excess

the plan and intended, in accordance with the procedure laid down by laws, for the covering

non-received revenue

other municipalities) shall be allocated by a decision

a municipal council. Article 31. Allocation

Budget Appropriations in the Event

a Failure to Implement the Plan until Amending a Budget Law *1. In the event

a failure to implement the state budget, that is, when the amount

revenue received is less than the planned amount and the temporarily available financial resources

the State will not suffice until an appropriate amendment to the budget law is passed in accordance with the established procedure, programmes shall be financed on the recommendation

the Ministry

Finance in accordance with the procedure laid down by the Law

the Republic

Lithuania on State Treasury (with the exception

a part

programme appropriations consisting

funds

EU financial support and co-funding as well as other financial support received). This provision does not apply to the programme funds referred to in points

Article 2

this Law, where they have been paid. *Note. This paragraph shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **1. In the event

a failure to implement the state budget, i.e., when the amount

revenue received is less than the planned amount and the working capital

the state budget is not sufficient to cover a temporary shortfall

revenue until an appropriate amendment to the budget law is passed in accordance with the established procedure, programmes shall be financed on the recommendation

the Ministry

Finance in accordance with the procedure laid down by the Law on State Treasury (with the exception

a part

programme appropriations consisting

funds

EU financial support and co-funding as well as other financial support received). This provision does not apply to the programme funds referred to in points

Article 2

this Law, where they have been paid. **Note. This paragraph shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the state budget and municipal budgets

2. In the event

a failure to implement municipal budgets, i.e., when the amount

revenue received is less than the planned amount, funding from the municipal budgets shall be carried out in accordance with the procedure laid down by municipal councils. In case

an anticipated failure to implement the approved revenue plan by the end

the year, decisions on the procedure for funding the programmes provided for in these budgets shall be passed by a municipal council on the recommendation

the director

municipal administration. *3. Amounts

state budget or municipal budget appropriations to be transferred to appropriation managers for the funding

programmes shall be reduced by the amounts equal to a shortfall (as against the plan) in actual payments

revenue into the state budget or municipal budget referred to in points

Article 2

this Law. *Note. This paragraph shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **3. Amounts

budget appropriations to be transferred to appropriation managers for the funding

programmes shall be reduced by the amounts equal to a shortfall (as against the plan) in actual payments

revenue into the budget referred to in points

Article 2

this Law.. **Note. This paragraph shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the state budget and municipal budgets

1. Article
2. Use and Repayment

Appropriations *1. After the close

the year, appropriation managers and the budgetary establishments subordinate to them, the budgetary establishments subordinate to the institutions within the areas

management

ministers implementing the programmes

the respective appropriation manager as well as other entities shall repay the budget funds present in the accounts disposed

by them and allocated for financing

programmes, with the exception

unused payments referred to in Article 2

this Law, a part not exceeding ¼

the annual amount

the payments referred to in Article 2

this Law (the entire amount, if all the programmes

the appropriation manager are funded solely from the funds referred to in Article 2

this Law) not later than by 10 January: 1) by transferring funds

the state budget from the accounts disposed

by managers

state budget appropriations and the budgetary establishments subordinate thereto to the State Treasury account; 2) by transferring funds

municipal budgets shall be transferred from the accounts disposed

by managers

municipal budget appropriations and the budgetary establishments subordinate thereto as well as other entities to the accounts

municipal budgets. *Note. This paragraph shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **1. After the close

the year, appropriation managers and the budgetary establishments subordinate to them, the budgetary establishments subordinate to the institutions within the areas

management

ministers implementing the programmes

the respective appropriation manager as well as other entities shall repay the budget funds present in the accounts disposed

by them and allocated for financing

programmes, with the exception

unused payments referred to in Article 2

this Law, a part not exceeding ¼

the annual amount

the payments referred to in Article 2

this Law (the entire amount, if all the programmes

the appropriation manager are funded solely from the funds referred to in Article 2

this Law) not later than by 10 January: 1) by transferring funds

the state budget from the accounts disposed

by managers

state budget appropriations and the budgetary establishments subordinate thereto to the State Treasury account; 2) by transferring funds

municipal budgets shall be transferred from the accounts disposed

by managers

municipal budget appropriations and the budgetary establishments subordinate thereto as well as other entities to the accounts

municipal budgets. **Note. This paragraph shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the state budget and municipal budgets

2. Ministries and other state institutions or establishments shall retain the balances carried forward in the amount

monthly expenditure, which are held in the accounts opened with foreign credit institutions by diplomatic and other missions, consular posts, special and defence attaches

the Republic

Lithuania and the representatives

Lithuania transferred to international and foreign institutions. The Ministry

National Defence shall retain the balances carried forward in the amount

expenditure

three months, which are in the accounts

an international operations military element deployed in a foreign state opened with foreign credit institutions or kept by responsible persons. 3. At the end

the year, the remaining unspent amounts

targeted appropriations earmarked for municipal budgets when adopting a Laws on the Approval

Financial Indicators

the State Budget and Municipal Budgets for a corresponding year, also the funds allocated during the year to municipal budgets under separate laws or Government resolutions or used not for their purpose shall be repaid to the state budget by 10 January by transfer from municipal budget accounts to the State Treasury account, unless a Law on the Approval

Financial Indicators

the State Budget and Municipal Budget for the corresponding year establishes otherwise. 4. Funds

EU financial support and co-funding may be used solely for the funding

EU financial support programmes and projects. *5. To finance programmes during the current budget year, the payments into the state budget and municipal budgets referred to in Article 2

this Law must be used first. *Note. This paragraph shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **5. To finance programmes during the current budget year, the payments into the state budget referred to in Article 2

this Law must be used first. **Note. This paragraph shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the state budget and municipal budgets

1. Article
2. Rights

the Government or an Institution Authorised by It 1. The Government or an institution authorised by it shall have the right: 1) to allocate the appropriations from the state budget as approved by the Seimas according to programmes; 2) in compliance with the legal acts

the European Union and the Republic

Lithuania regulating administration

funds

EU financial support and taking account

data

implementation

programmes and projects, to reallocate the funds earmarked for EU financial support programmes and projects, including the funds

co-funding, among appropriation managers, investment fields, state functions and items

economic classification; **3) with a view to covering a temporary shortfall

funds in respect

a part

programme appropriations consisting

funds

EU financial support and co-funding, to use temporarily available financial resources

the State; *Note. This point shall apply to drawing up, approval, implementation, evaluation and reporting for the State budget and municipal budgets

2014 and subsequent years. **3) with a view to covering a temporary shortfall

funds in respect

a part

programme appropriations consisting

funds

EU financial support and co-funding, to use funds

the working capital and borrowed funds

the state budget; **Note. This point shall apply to implementation, evaluation and reporting for the state budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the state budget and municipal budgets

2013. 4) (Repealed as

1 January 2011); 5) to use, subject to repayment, the monetary resources

state monetary funds and other monetary resources which have not been used otherwise for the funding

the programmes provided for in the state budget, management

state debt, investment in state securities, and taking out

loans to cover a temporary shortfall

municipal revenue; 6) to specify the maximum amounts

funds for which appropriation managers shall have the right to assume liabilities during the current budgetary year by concluding agreements on implementation

the projects supported by funds

EU financial support and co-funding; 7) where necessary, to establish the interest rate on the short-term loans granted to municipalities from the state budget; 8) to establish the amount

appropriations for work remuneration in respect

the obligations relating to participation in unplanned international operations. 2. A Law on the Approval

Financial Indicators

the State Budget and Municipal Budgets for the budget year may grant additional rights to the Government or an institution authorised by it. Article 34. Mutual Settlements between the State Budget and Municipal Budgets If the laws passed by the Seimas or the implementing resolutions adopted by the Government affect commitments

the state budget and municipal budgets for the current budget year, the Ministry

Finance and executive bodies

municipalities shall revise, in accordance with the procedure laid down by laws, the settlements between the state budget and municipal budgets. *Article 35. Sets

Reports on the Implementation

the State Budget and Municipal Budgets 1. Sets

reports on the implementation

the state budget and municipal budgets, which are subject to the requirements set forth by the Law on Public Sector Accounts, shall be drawn up on the basis

the indicators approved by the Law

the Republic

Lithuania on the Approval

the Financial Indicators

the State Budget and Municipal Budgets for a specific year, the used Government Reserve funds and funds

the reserve

the director

a municipality’s administration as well as carried forward amounts

excess and unused payments into the state budget or municipal budget referred to in subparagraphs 1 and 2

paragraph 16

Article 2

this Law and intended for programme financing. 2. In the event

a failure to comply with objectives

annual improvement in terms

the general government sector balance indicator or where it transpires that the funds

the general government sector were not managed in a manner which would ensure general government surplus over the medium term, valid reasons must be indicated in accordance with the procedure laid down by Chapter Six. 3. A set

reports on the implementation

the state budget shall be drawn up by the Ministry

Finance on the basis

the state budget accounting data, namely, reports on the revenue received into the state budget and the sets

reports on implementation

the budget as submitted by managers

state budget appropriations. 4. Sets

reports on the implementation

municipal budgets shall be drawn up by municipal administrations on the basis

accounting data

municipal budgets, namely, reports on the revenue received into the municipal budgets, reports on the appropriations used by managers

municipal budget appropriations and the sets

reports on the implementation

a budget as submitted by the appropriation managers. 5. The rules for drawing up a set

reports on the implementation

a budget shall be established by the Ministry

Finance. 6. A set

reports on the implementation

the state budget shall be submitted to the Government by the Ministry

Finance in accordance with the procedure and within the time limits laid down by the Government. 7. The non-repayable financial support received by the establishments financed from a budget shall be recorded in the accounts

the budgetary establishments in a separate account. *Note. This Article shall apply to drawing up, approval, implementation, evaluation and reporting for the State budget and municipal budgets

2014 and subsequent years. **Article 35. Sets

Reports on the Implementation

the State Budget and Municipal Budgets 1. Sets

reports on the implementation

the state budget and municipal budgets, which are subject to the requirements set forth by the Law on Public Sector Accounts, shall be drawn up on the basis

the indicators approved by the Law on the Approval

the Financial Indicators

the State Budget and Municipal Budgets for the year concerned, the used Government Reserve funds and funds

the reserve

the director

a municipality’s administration as well as carried forward amounts

excess and unused payments into the budget referred to in subparagraphs 1 and 2

paragraph 11

Article 2

this Law and intended for programme financing. 2. A set

reports on the implementation

the state budget shall be drawn up by the Ministry

Finance on the basis

the state budget accounting data, namely, reports on the revenue received into the state budget and the sets

reports on implementation

the budget as submitted by managers

state budget appropriations. 3. Sets

reports on the implementation

municipal budgets shall be drawn up by municipal administrations on the basis

accounting data

municipal budgets, namely, reports on the revenue received into the municipal budgets, reports on the appropriations used by managers

municipal budget appropriations and the sets

reports on the implementation

a budget as submitted by the appropriation managers. 4. The rules for drawing up a set

reports on the implementation

a budget shall be established by the Ministry

Finance. 5. A set

reports on the implementation

the state budget shall be submitted to the Government by the Ministry

Finance in accordance with the procedure and within the time limits laid down by the Government. 6. The non-repayable financial support received by the establishments financed from a budget shall be recorded in the accounts

the budgetary establishments in a separate account. **Note. This Article shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the State budget and municipal budgets

1. Article
2. Approval

Sets

Reports on the Implementation

the State Budget and Municipal Budgets 1. The Government shall analyse the received set

reports on the implementation

the state budget, make relevant decisions and submit to the Seimas for approval in accordance with the procedure and within the time limits prescribed by the Statute

the Seimas. 2. A set

reports on the implementation

the state budget shall be approved according to the indicators specified in subparagraphs 1-6

paragraph 2

Article 18

this Law taking account

the reports

state schools

higher education drawn up according to all items

economic classification. 3. A set

reports on the implementation

a municipal budget shall be approved by a municipal council according to the indicators specified in paragraph 4

Article 26

this Law. 4. A summary set

reports on the implementation

budgets

all municipalities shall be formed by the Ministry

Finance and submitted to the Government in compliance with the Rules for Drawing up and Implementation

Budgets approved by the Government. *CHAPTER FIVE CONTROL

BUDGET IMPLEMENTATION AND ASSESSMENT

MODELLING

THE ECONOMIC DEVELOPMENT SCENARIO *Note. This title

the Chapter shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. **CHAPTER FIVE CONTROL

BUDGET IMPLEMENTATION AND ASSESSMENT

BUDGET IMPLEMENTATION **Note. This title

the Chapter shall apply to implementation, evaluation and reporting for the State budget and municipal budgets

2012 and drawing up, approval, implementation, evaluation

and reporting for the State budget and municipal budgets

1. Article
2. Control

Budget Implementation 1. Audit

the implementation

the state budget shall be carried out by the National Audit

fice, and audit

the implementation

municipal budgets shall be carried out by the National Audit

fice within the scope

national audit and municipal controllers (municipal control and audit services). 2. The National Audit

fice shall indicate in its opinion as submitted to the Seimas whether the allocated appropriations have been used to achieve programme goals, whether the appropriations have been used in the most effective manner possible, whether there have been any violations

legal acts in the use

the appropriations, also to what extent the programme goals have been achieved. 3. Implementation

municipal budgets, estimates

programmes

managers

municipal budget appropriations, accounting

municipal budget funds and sets

consolidated reports

municipalities shall be audited by municipal control and audit services. 4. Implementation

programmes

budget appropriation managers and the budgetary establishments subordinate thereto and other entities shall be assessed by internal audit services in compliance with the Law on Internal Control and Internal Audit (Valstybės žinios (

ficial Gazette) No 123-5540, 2002) and other legal acts regulating internal audit. *5. Modelling

the economic development scenario and budget revenue plans shall be assessed by the Ministry

Finance on the basis

objective criteria, including final assessment. Results

this assessment shall be publicly announced and shall be taken into account when drawing up other economic development scenarios and budget revenue plans. Where, in the course

assessment, a considerable partiality is detected, understood as the errors which reoccur for at least four consecutive years and which affect the economic development scenario and do not result from changes in forecasts or from methods

modelling, the Ministry

Finance shall undertake measures to eliminate such partiality

actions and shall publicly announce the measures undertaken. *Note. This paragraph shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. *CHAPTER SIX PROCEDURES CONCERNING VIOLATIONS

FISCAL DISCIPLINE, CLARIFICATION AND JUSTIFICATION THEREOF *Note. Chapter Six shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. Article 38. Procedures regarding Unjustified Failure to Comply with Objectives

Annual Improvement in the General Government Sector Balance Indicator 1. After the close

the budget year and when submitting to the Semas a national set

financial statements in accordance with the procedure laid down by the Law on Public Sector Accounts, the Government shall additionally submit a report on implementation

the objective

annual improvement in the general government sector balance indicator drawn up by the Ministry

Finance in accordance with the procedure laid down by the Government. 2. Where a report on implementation

the objective

annual improvement in the general government sector balance indicator indicates that the objective

annual improvement in the general government sector balance indicator has not been implemented (the indicator shall be considered to not have been implemented where annual improvement deviates from the objective by more than 0.2 per cent

GDP at current prices), the Prime Minister must orally account to the Seimas for the failure. In the absence

valid reasons referred to in Article 39

this Law, the Prime Minister shall present other explanations

the failure to implement the objectives

annual improvement in the general government sector balance indicator and propose measures to be taken with a view to preventing non-implementation

the objectives for the same reasons in the future. 3. Where information on an annual increase in the tax increase risk indicator by more than 0.5 per cent is provided when submitting to the Seimas a draft Law

the Republic

Lithuania on the Approval

the Financial Indicators

the State Budget and Municipal Budgets for a specific year, the Prime Minister shall be invited to the Seimas to account orally for the increase in the tax increase risk indicator and the prospects

management

this risk over the medium term. Article 39. Reasons Justifying a Failure to Comply with Objectives

Annual Improvement in the General Government Balance Indicator or to Ensure that General Government Finances be in Surplus and Close to Balance over the Medium Term The reasons justifying a failure to comply with objectives

annual improvement in the general government balance indicator or to ensure that general government finances be in surplus and close to balance over the medium term shall be as follows: 1) when drafting the Law

the Republic

Lithuania on the Approval

the Financial Indicators

the State Budget and Municipal Budgets for a specific year, use was made

the data forecasted by the Lithuanian Department

Statistics or the European Commission, which were subsequently adjusted; 2) a Seimas resolution adopted on the objective

annual improvement in the general government sector balance indicator in the budget year

implementation

the state budget and municipal budgets for a specific year; 3) other factors not provided for by laws and established under a Seimas resolution in respect

a specific budget year; 4) the events beyond the control

the Government which affect the financial indicators

the general government sector. CHAIRMAN

THE SUPREME COUNCIL

THE REPUBLIC

LITHUANIA VYTAUTAS LANDSBERGIS The Annex shall apply to drawing up, approval, implementation, evaluation and reporting for the state budget and municipal budgets

2014 and subsequent years. Annex to the Republic

Lithuania Law on the Budget Structure LEGAL ACTS

THE EUROPEAN UNION IMPLEMENTED BY THIS LAW 1. Council Directive 2011/85/EU

8 November 2011 on requirements for budgetary frameworks

the Member States (OJ 2011 L 306, p. 41).