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:
- Republic of Lithuania Constitutional Law on Implementation of the Fiscal Treaty
- Republic of Lithuania Law on Fiscal Discipline
- European Union's Stability and Growth Pact
- Treaty on Stability, Coordination and Governance in the Economic and Monetary Union between the Kingdom of Belgium, the Republic of Bulgaria, the Kingdom of Denmark, the Federal Republic of Germany, the Republic of Estonia, Ireland, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy of Luxembourg, Hungary, Malta, the Kingdom of the Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese Republic, Romania, the Republic of Slovenia, the Slovak Republic, the Republic of Finland and the Kingdom of Sweden