To ensure sustainability of public sector finances and stability of economic development, and to implement the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union of 2 March 2012, Constitutional Law on the Implementation of the Fiscal Treaty of the Republic of Lithuania was adopted on 6 November 2014, accordingly related amendments were adopted to the Law on Fiscal Discipline and the Law on the National Audit Office.
Following the reformed requirements of the EU Economic Governance the National Audit Office of Lithuania has been mandated to implement the function of a budget policy monitoring institution (independent fiscal institution). As a result the National Audit Office is obliged to prepare, submit to the Seimas (Lithuanian Parliament) and publicise:
- an opinion on the validity of reasons for non-fulfilment of the structural impetus target and the eligibility of measures for fulfilment of this target;
- an opinion on the structural impetus target set by the Draft Law on the Approval of Financial Indicators of the State Budget and Municipal Budgets for the Year Concerned of the Republic of Lithuania and on the need for additional measures (in monetary terms) to fulfil this target;
- an opinion on the approval of the economic development scenario;
- an opinion on the correspondence between the emerged or projected situation and the extraordinary event concept;
- an opinion on the compliance of the structural impetus targets and the guidelines on measures to fulfil these targets proposed by the Government to the Seimas for approval with the requirements for the medium-term target achievement deadline established in the Republic of Lithuania Constitutional Law on the Implementation of the Fiscal Treaty.
To ensure monitoring of the compliance with the rules and targets defined in the Constitutional Law on the Implementation of the Fiscal Treaty and to prepare the aforementioned opinions the Budget Policy Monitoring Department has been established in the National Audit Office of Lithuania.