Fiscal Policy

Fiscal policy is the management of the general government revenue and expenditure as a whole for sustainable economic growth.

In fiscal policy-making of Lithuania, the Ministry of Finance:

  • sets fiscal policy guidelines and makes medium-term general government financial projections;
  • sets medium-term permissible general government expenditure ceilings and general government balance indicator target values;
  • monitors the situation of the general government finances, analyses it and gauges the compliance of the general government fiscal indicators with the national and European Union fiscal discipline rules;
  • coordinates the preparation of the Lithuanian draft budgetary plan for a year concerned and  the Stability Programme of Lithuania. The Lithuanian draft budgetary plan is presented to the European Commission by 15 October each year, and the Stability Programme  – by 30 April;
  • evaluates a feasible impact of the decisions embedded by the European Union or national legislation on the general government finances;
  • compiles, organises and processes statistics to determine the general government financial situation and to draft the medium-term general government projections.

Overriding national and European Union legislation regulating the fiscal policy: