Fiscal governance legislation

The Lithuanian fiscal framework is governed by the following key legal acts (in Lithuanian):

• Constitutional Law on the Implementation of the Fiscal Treaty – establishes numerical fiscal rules and the main corresponding procedures;
• Law on Fiscal Governance – establishes procedural rules for the management of public finances;
• Law on the Budget Structure – establishes the principles and rules governing the structure, preparation, approval, execution, and control of the state and municipal budgets.
• Law on the National Audit Office –  establishes that the National Audit Office is also an independent fiscal institution;
• Government Resolution „On the Implementation of the Law on Fiscal Governance“ – approves 1) the Description of the Procedure for the Preparation and Implementation of Lithuania‘s Medium-term Fiscal Structural Plan and Annual Progress Report; 2) the Description of the Procedure for the Preparation and Publication of the Economic Development Scenario.

The Lithuanian fiscal framework is aligned with the fiscal framework of the European Union.

The EU fiscal framework is governed by the following key legal acts:

• Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97;
• Council Regulation (EU) 2024/1264 of 29 April 2024 amending Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure; 
• Council Directive (EU) 2024/1265 of 29 April 2024 amending Directive 2011/85/EU on requirements for budgetary frameworks of the Member States;
• Legal basis of the Stability and Growth Pact.