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 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.
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Bibliographic Details
| Main Author: |
World Bank |
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| Language: | English
en_US |
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| Published: |
Washington, DC
2002-05-16
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| 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, |
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| Online Access: | http://documents.worldbank.org/curated/en/2002/05/1798550/lithuania-issues-municipal-finance
https://hdl.handle.net/10986/15420
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