Planning and approval

Overview Home Competence Areas Budget Planning and approval The legal basis for drawing up and execution of the budget is the Constitution of the Republic of Lithuania, Law on the Budget Structure, Law on Fiscal Discipline, Statute of the Seimas, Law on the Methodology on Determination of Municipal Budgetary Revenues, Law on the Approval of Financial Indicators of the State Budget and Municipal Budgets for the Year Concerned, Rules for Drawing up and Implementation of Budgets approved by the Government, Decision on the Approval of the Municipal Budget for the Year Concerned made by relative municipal council and other legal acts regulating the receipt of budget revenue and funding of programmes. Draft planned indicators of the consolidated aggregate of the State budget and municipal budgets for three budgetary years are prepared on the basis of the Government Programme, Stability Programme of Lithuania, State Progress Strategy, National Progress Programme, other planning documents approved by the Seimas and Government, Law on the Budget Structure, Law on Fiscal Discipline, other laws and other legal acts, national medium-term economic development scenario, European Union strategic documents on financial assistance, strategic action plans of appropriation managers, also programmes submitted by the State budget appropriation managers and draft estimates of programmes. Draft financial indicators of the State budget and municipal budgets for the year concerned may deviate from the planned indicators of the consolidated aggregate of the State budget and municipal budgets for three budgetary years approved by the Seimas only in case, when the Government in writing submits to the Seimas the clarification on how the changes reflect new economic policy priorities. The State budget and municipal budget planning, preparation and approval procedures are regulated by the Rules for Drawing up and Implementation of the State Budget of the Republic of Lithuania and Municipal Budgets approved by Government Resolution No 543 of 14 May 2001 and the Strategic Planning Methodology approved by Government Resolution No 827 of 6 June 2002 as well as by the Plan for Preparation of Draft Financial Indicators of the State Budget and Municipal Budgets (hereinafter – the Plan) for the subsequent year approved by the Government Resolution at the beginning of each year. The Plan covers t…