Main page
 
Press Release
15/10/2020   National Audit Office of Lithuania has presented audit opinions to the Seimas

The National Audit Office of Lithuania (NAOL) at the Seimas presented opinions on the national set of financial statements for the year 2019, the sets of financial statements and budget execution reports of six resource funds: Reserve (Stabilisation) Fund, Compulsory Health Insurance Fund, State Social Insurance Fund, Guarantee Fund, Long-term Work Benefits Fund, and Decommissioning of Ignalina Nuclear Power Plant Fund. Pursuant to its constitutional duty, the NAOL draws up these opinions annually.

The opinions on the aforementioned financial statements and budget execution reports are presented in the autumn, although the Government has already reported on them in spring. Currently, the Government, the Seimas, and the public are discussing the issues related to the budget formation for the upcoming year, as well as to search for sources of financing for the commitments undertaken. In the previous audits, the NAOL recommended that it is necessary to harmonise the deadlines for reporting to the Seimas so that both the financial data and the assessments carried out by the NAOL would be presented together with the results achieved by the Government. Just a few days ago, the Seimas adopted the legislation implementing the recommendation – in 2023, the entire reporting process will be moved to spring, when the budgetary planning process for the upcoming year is started.

“High-quality, results-oriented budgetary governance is a guarantee of a rational and transparent allocation and use of the State resources. We have been discussing this and looking for solutions since 2016. An important step was taken this year, with the establishment of a new strategic management system. This created legal preconditions for the implementation of the recommendations made by the NAOL related to State budget planning and reporting for its execution, however, the work necessary for the preparation of the new quality medium-term budget is delayed,” emphasised the Auditor General Mindaugas Macijauskas when presenting the opinions in the Seimas.

Assessing the information on public debt provided with the national set of financial statements, the auditors noted that, although the economy has been growing in recent years, the debt in absolute terms has not decreased – it grew by almost a billion during 2019. Only the debt-to-GDP ratio was falling, which was 36.2 % at the end of 2019, and currently there is talk of risks of a ratio of 50–60 % are discussed. The Ministry of Finance, taking into account the proposals of the NAOL for several years to determine the fiscal space for Lithuania, is planning to carry out an analysis and assess the level of general government debt it would be appropriate not to exceed in the long term in order to maintain the sustainability of general government finances in the long term, taking into account demographic changes and other factors.

 

Responsible for the information Communication Division
Last updated on 18 November 2020

National Audit Office of Lithuania

Pamėnkalnio St 27, LT-01113 Vilnius, Phone: + 370 5 266 6793, + 370 5 266 6752, Email: nao@vkontrole.lt.