INTELLECTUAL ECONOMICS 2007, Number 1(1)Gediminas Davulis
THE ANALYSIS OF FINANCE SYSTEM OF LITHUANIAN LOCAL AUTHORITIES
Mykolas Romeris University Publishing Centre. Vilnius. Lithuania 2007 Nr.1(1), p. 29-29
Realization of fiscal decentralization in the public economic sector of Lithuania and its correspondence to the principles of the European Charter of Local Self-Government are considered. The principles and order of the structure of local authorities budgets, the significance of local authorities nonbudgetary funds and their development in Lithuania are discussed. Municipal revenues, their structure and sources are described. Dynamics of local authorities budget revenues and expenses and their main components is analysed in the period of 1999-2005. The model of equalizing financial resources between Lithuanian local authorities as well as borrowing opportunities are discussed. The principle of programme budget is successfully realized in both on the state and local authorities level in Lithuania. The analyses of structure of local authorities budged revenues and expenses shoved that principle of fiscal decentralization are not realized enough in the public sector of Lithuania. Structure of expenses of local authorities budgets is similar to that of countries of European Union. However the share of subsidies of state budget in the revenues of municipal budgets is too large. The borrowing opportunities of municipalities are not sufficient, too. These factors limit the financial independence of local authorities in Lithuania.JEL classification G280, O310.
Keywords: finance of local authorities, fiscal decentralization, budgets of local authorities, non- budgetary funds.