National Audit Office of Lithuania evaluated the draft State Budget for 2010

In the view of the National Audit Office, the draft State Budget for 2010 drawn up by the Government essentially conforms to provisions of the Law on the Budget Structure, however, only partially implements the recommendation of the Council of the European Union to correct the current excessive deficit no later than by 2011. “The planning of the Budget revenue in the next year by the Ministry of Finance is prudent, resisting optimistic illusions, therefore Budget collection plans should be accomplished,” says the Auditor General Rasa Budbergytė. However, reserves of revenue collection and saving are not yet exhausted.

Every year, in its opinion on the draft Budget the NAO has recommended to reduce the number of appropriations managers and implemented programmes. This year, improving the management of public funds, the Ministry of Finance reduced the number of appropriations managers by 17 per cent and the number of implemented programmes by 18 per cent. It is expected to help the better overseeing of implementation of the Budget.

In its opinion on the draft Budget, the NAO points out issues to be corrected in the Budget revenue part. It is pointed out that methods and procedures of forecasting the tax revenue are still not regulated. It is not certain whether the plan to receive less revenue from lotteries and gambling tax is reasonable, since the recently conducted audit revealed problems related to collection of this tax and recommended to increase the tax burden on institutions organizing gambling. It is also indicated that the State Budget should receive higher than planned revenue for services provided by budgetary institutions.

Assessing the planned State expenditure for the next year, the NAO indicated that the planned appropriations for the public debt management expenditure may be insufficient. Moreover, proposition of the NAO and the Seimas Audit Committee on not using the special target subsidies unused by municipalities for covering the debts was not taken into consideration.

In the view of the NAO, there are ways of using the Budget funds more economically. For example, some of investment funds planned for improvement of conditions in certain institutions may be withdrawn.

Opinion on the Draft Law on Approval of Financial Indicators of the State Budget and Municipal Budgets for 2010 of the Republic of Lithuania