Description: Lithuania : Issues in Municipal Finance

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Lithuania : Issues in Municipal Finance

Since the establishment of Lithuania's independence, the country achieved substantial progress in transforming its local governments into independent units of Government: structural reforms to prod intergovernmental relations were made in 1994...

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Bibliographic Details
Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2013
Subjects:	MUNICIPAL GOVERNMENT LOCAL GOVERNMENT EXPENDITURES STRUCTURAL REFORMS INTERGOVERNMENTAL RELATIONS REFORM IMPLEMENTATION REVENUE MEASURES REVENUE SHARING REVENUE ESTIMATING AUTONOMY SALARY REMITTANCES WELFARE ECONOMICS CENTRAL GOVERNMENT AUTHORITIES ARREARAGES BORROWING ARRANGEMENTS DEFICIT FINANCING DISTRIBUTIONAL EFFICIENCY PUBLIC SPENDING WAGE RATES CIVIL SERVICE PENSIONS CAPITAL INVESTMENTS FINANCING OPTIONS EUROPEAN UNION MEMBERSHIP FUNDS FISCAL CONSTRAINTS CAPITAL UTILIZATION CAPITAL MARKETS BANKING CRISES FINANCIAL INTERMEDIATION ACCOUNTING ACCRUAL ACCOUNTING ACTUAL COSTS APPROPRIATIONS ASSETS BANKING SECTOR BORROWING BUDGET EXECUTION BUDGET PROCESS CITIES CIVIL SERVICE CONSOLIDATION CONSUMERS CORPORATE INCOME TAXES COUNCILORS CREDIT MARKETS DEBT SERVICE DEFICITS EIB ELECTRICITY EQUALIZATION EXPENDITURE ASSIGNMENT EXPENDITURE RESPONSIBILITIES EXPENDITURE STATEMENTS FINANCIAL MANAGEMENT FINANCIAL REPORTING FISCAL POLICY FISCAL RESPONSIBILITY FISCAL YEAR GARBAGE COLLECTION GOVERNMENT EMPLOYEES GOVERNMENT FINANCE GOVERNMENT SPENDING HOUSING INCOME INCOME TAXES INSURANCE INTERNATIONAL BOND MARKETS LAND PRICES LAWS LEGAL PROTECTION LEGISLATION LOCAL AUTHORITIES LOCAL FINANCE LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL OFFICIALS LOCAL REVENUE LOCAL SPENDING MARKET VALUE MASS TRANSIT MUNICIPAL COUNCILS MUNICIPAL DEBT MUNICIPAL FINANCE MUNICIPAL GOVERNMENTS MUNICIPAL REVENUE MUNICIPALITIES MUNICIPALITY NATIONAL CIVIL SERVICE NORDIC INVESTMENT BANK PENALTIES PENSIONS PERSONAL INCOME TAXES PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PROPERTY ASSESSMENTS PROPERTY TAXES PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SECTOR EMPLOYMENT PUBLIC TRANSIT PUBLIC TRANSPORT PUBLIC UTILITIES PUBLIC WORKS REVENUE ASSIGNMENT REVENUE EQUALIZATION SAVINGS SHORT TERM DEBT SOCIAL SERVICES STREET LIGHTING STRUCTURE OF GOVERNMENT TAX TAX ADMINISTRATION TAX RATES TAX REVENUE TAX REVENUES TAXATION TREASURY UNFUNDED MANDATES URBAN AREAS URBAN SERVICES URBANIZATION WAGES WATER SUPPLY
Online Access:	http://documents.worldbank.org/curated/en/2002/05/1798550/lithuania-issues-municipal-finance http://hdl.handle.net/10986/15420

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Summary:	Since the establishment of Lithuania's independence, the country achieved substantial progress in transforming its local governments into independent units of Government: structural reforms to prod intergovernmental relations were made in 1994 and 1997, and will continue in 2002. Nevertheless, several issues remain, requiring particular attention from the Government. First, revenue and expenditure assignment between levels of government, and the degree of central regulation over local finance, needs to be reviewed. Local governments face fiscal constraints, for revenues are centrally collected, and distributed at centrally determined rates. And, although local governments have nominal authority over their expenditures, major items (salaries and welfare payments) are subject to Government control, resulting in local governments being faced with running arrears, or borrowing from the Government or private lenders. Although high per capita jurisdictions are required to share revenues with poorer counterparts, it is not clear that distribution mechanisms actually allocate revenues as needed. Upcoming reforms are likely to change this, but a greater change in the revenue distribution criteria, would be by funding delegated functions, but distributing according to sector-specific indicators of need, as well as budgeting financial availability. Second, financing capital investment may be improved by a greater fiscal autonomy to local governments, and mostly, by improving the quality of financial information, with reforms that include the separation of current, and capital accounts, and the adoption of accrual accounting for expenditures.