Budget

The structure of the budget is governed by the Republic of Lithuania Law on the Budget Structure.

The objective of the Law on the Budget Structure is to ensure efficient use of monetary resources in the process of formation and implementation of the budget with a view to attaining the long-term, overall economic and social welfare for citizens of the Republic of Lithuania, sustainable long-term economic growth, employment without posing threats to the stability of prices.

The State budget is the State budget revenue and appropriation plan for a budget year approved by the Seimas (Parliament) of the Republic of Lithuania.

The municipal budget is a municipal budget revenue and appropriation plan for a budget year approved by a municipal council. Each municipality has its own independent budget.

The State budget and municipal budget revenue is comprised of total funds accumulated by the State budget and municipal budgets. The State and municipal budget revenue and appropriations may be only monetary funds.

Appropriations is the amount of funds for expenditure and acquisition of tangible and intangible fixed assets (hereinafter referred to as the assets) approved in the State budget and the municipal budget which the appropriation manager has the right to receive during the budget year from the funds accumulated in the State budget and the municipal budget after the submission of the request for payment to the institution  managing the State Treasury or to the administration of the municipality for financing the approved programmes.

The State budget and municipal budget appropriations areused for performing the State and municipal functions. Taxes, compulsory payments, fees and charges collected in the Republic of Lithuania and funds borrowed on behalf of the State may be reallocated only through the State budget and municipal budgets, State Social Insurance Fund, Compulsory Health Insurance Fund, Privatisation Fund, Reserve (Stabilisation) Fund, State Enterprise Ignalina NPP Decommissioning Fund, Guarantee Fund, and municipal privatisation funds.

Budget year is a 12-month budget period running from 1 January to 31 December.

The State budget may be deficit, balanced or surplus.

Budget deficit is the difference between budget revenue and appropriations when appropriations exceed revenue.

Budget surplus is the difference between budget revenue and appropriations when revenue exceeds appropriations.