Funds allocated to land reform are used at the discretion of municipalities

The existing order does not ensure that municipalities use funds received for the sold public land lots to the set priorities, stated the National Audit Office having evaluated how Vilnius and Šiauliai City municipalities, as well as Vilnius and Ukmergė Region municipalities used over LTL 103 million gained for the sold public land lots. It comprises 50 per cent of all the funds received by national municipalities for the sold public land in 2006-2008.


According to the Auditor General Rasa Budbergytė, the audit showed  clearly that the hindrance of the land reform is also due

to the fact that the use of funds for the sold public land lots does not follow the set priorities.


“The currently valid use and control system for funds gained for the sold public land is faulty. If these funds would be used by municipalities under the priorities set by the Government, land restoration to citizens, as well as rates of property privatization would become quicker. The NAOL recommended the Government to more clearly regulate the manner of accounting of these funds, the purposes of their use, as well as control of the use,“ says Ms Budbergytė.

The NAOL detected that funds for the sold public land are accounted for by municipalities together with their other funds, therefore it becomes impossible to verify if these funds are used for their intended particular purpose set by the Government. In the opinion of the NAOL, the Government could engage municipalities to account for these funds separately. Currently such a requirement is not set in legislation.

The NAOL recommended the Government to implement concrete measures, which would ensure that funds received by municipalities for the sold public land lots would be rationally allocated, properly used, and their control would be ensured.


Use of Funds Received for the Sold Public Land Lots