Amending Resolution No 543 of the Government of the Republic of Lithuania of 14 May 2001 on the Approval of the Procedure for the Drawing up and Implementation of the State Budget of the Republic of Lithuania and Municipal Budgets


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Official translation
 
 
government of the republic of lithuania
 
resolution no 751
 
of 15 June 2004
 
amending resolution no 543 of the government of the republic of lithuania of 14 may 2001 on the approval of the procedure for the drawing up and implementation of the state budget of the republic of lithuania and municipal budgets
 
 
Vilnius
 
 
The Government of the Republic of Lithuania h a s  r e s o l v e d:
to amend Resolution No 543 of the Government of the Republic of Lithuania of 14 May 2001 on the Approval of the Procedure for the Drawing up and Implementation of the State Budget of the Republic of Lithuania and Municipal Budgets (Valstybės žinios (Official Gazette) No 42-1455, No 52-1843, 2001; No 47-1807, 2002; No 54-2385, 2003; No 47-1557, 2004) and to word it as follows:
 
“GOVERNMENT OF THE REPUBLIC OF LITHUANIA
 
RESOLUTION
 
ON THE APPROVAL OF THE PROCEDURE FOR THE DRAWING UP AND IMPLEMENTATION OF THE STATE BUDGET OF THE REPUBLIC OF LITHUANIA AND MUNICIPAL BUDGETS
 
Acting pursuant to paragraph 1 of Article 8 of the Republic of Lithuania Law on the Budget Structure (Valstybės žinios (Official Gazette) No 24-596, 1990, No 4-47, 2004), the Government of the Republic of Lithuania h a s  r e s o l v e d:
to approve the Rules for the Drawing up and Implementation of the State Budget of the Republic of Lithuania and Municipal Budgets (as appended).”.
 
 
 
Prime Minister                                                                                 Algirdas Brazauskas
 
 
 
Minister of Finance                                                                         Algirdas Butkevičius
 
 
 
APPROVED by
Resolution No 543 of the Government of the Republic of Lithuania of 14 May 2001
(as amended by Resolution No 751 of the Government of the Republic of Lithuania of 15 June 2004)
 
 
RULES FOR THE DRAWING UP AND IMPLEMENTATION OF THE STATE BUDGET OF THE REPUBLIC OF LITHUANIA AND MUNICIPAL BUDGETS
 
I. GENERAL PROVISIONS
 
1. The Rules for the Drawing up and Implementation of the State Budget of the Republic of Lithuania and Municipal Budgets (hereinafter referred to as these Rules) lay down the procedures for drawing up, approving and implementing the state budget of the Republic of Lithuania (hereinafter referred to as the state budget) and municipal budgets, as well as rights and obligations of appropriation managers.
2. The concepts used in these Rules shall have the meanings assigned to them in the Republic of Lithuania Law on the Budget Structure (Valstybės žinios (Official Gazette) No 24-596, 1990; No 4-47, 2004), the Republic of Lithuania Law on Regional Development (Valstybės žinios (Official Gazette) No 66-1987, 2000; No 123-5558, 2002), the Republic of Lithuania Law on the State Reserve (Valstybės žinios (Official Gazette) No 78-2359, 2000), the Rules for the Administration of the European Union Structural Funds in Lithuania approved by Resolution No 649 of the Government of the Republic of Lithuania of 31 May 2001 (Valstybės žinios (Official Gazette) No 48-1676, 2001; No 88-3999, 2003), and the Strategic Planning Methodology approved by Resolution No 827 of the Government of the Republic of Lithuania of 6 June 2002 (Valstybės žinios (Official Gazette) No 57-2312, 2002) (hereinafter referred to as the Strategic Planning Methodology).
 
 
II. DRAFTING OF FINANCIAL INDICATORS OF THE STATE BUDGET AND MUNICIPAL BUDGETS
 
3. Financial indicators of the state budget and municipal budgets shall be drafted by the Ministry of Finance in accordance with the Constitution of the Republic of Lithuania, the Republic of Lithuania Law on the Budget Structure, the Statute of the Seimas of the Republic of Lithuania (Valstybės žinios (Official Gazette) No 15-249, 1994, No 5-97, 1999), the Republic of Lithuania Law on the Methodology of Determination of Municipal Budgetary Revenues (Valstybės žinios (Official Gazette) No 69-1743, 1997; No 94-3307, 2001), other laws, resolutions of the Government of the Republic of Lithuania, these Rules and other legal acts. Every year, the Government of the Republic of Lithuania shall approve the Plan for the Preparation of the Draft Financial Indicators of the State Budget and Municipal Budgets for the following year.
4. Public bodies and institutions shall provide, within the deadlines set in the Plan for the Preparation of the Draft Financial Indicators of the State Budget and Municipal Budgets as approved by the Government of the Republic of Lithuania for the respective year, the Ministry of Finance with information necessary for macroeconomic and fiscal projections.
5. Taking account of the strategic goals approved by the Government of the Republic of Lithuania and the projected macroeconomic indicators, the Ministry of Finance shall submit the figures specified in the Plan for the Preparation of the Draft Financial Indicators of the State Budget and Municipal Budgets as approved by the Government of the Republic of Lithuania for the respective year to the Government of the Republic of Lithuania for approval.
6. Once the Government of the Republic of Lithuania approves the main preliminary indicators of the national budget for the period of three years and the draft general principles for the establishment of maximum appropriations, the Ministry of Finance shall inform the prospective state budget appropriation managers of the maximum amounts of state budget appropriations that may be allocated to them for the period of three years. The forms of calculations necessary for the drawing up of the draft state budget shall be approved by the Minister of Finance. In addition, the Ministry of Finance shall prepare an outline of the preliminary limits of public investment for the period of three years by each area, acting in accordance with the general principles governing public investment in the relevant area, and send this information to appropriation managers responsible for the relevant area of public investment.
7. State budget appropriation managers shall, without exceeding the maximum amounts of state budget appropriations as communicated to them by the Ministry of Finance and acting in accordance with the Strategic Planning Methodology, draw up (adjust) their strategic activity plans and programmes, draw up draft estimates of their programmes and organise the drawing up of draft estimates of programmes of their subordinate budgetary bodies and other entities carrying out public administration functions (hereinafter referred to as other entities). State budget appropriation managers shall:
7.1. notify their subordinate budgetary bodies and other entities of the following indicators projected for these bodies and other entities for the period of three years: the main performance indicators, maximum amounts of appropriations, adjusted or newly approved rates of monetary and in-kind expenditures, normatives of the number of civil servants and other employees as agreed on with the Ministry of Finance, and other rates and indicators as are necessary for the detailed calculations of appropriations provided for in the draft estimates of programmes;
7.2. give instructions to their subordinate budgetary bodies and other entities concerning the drawing up of draft estimates of programmes and set the deadlines for the submission thereof; The deadlines to be set by state budget appropriation managers for their subordinate budgetary bodies and other entities for the drawing up of draft estimates of their programmes shall be such as to ensure that the Ministry of Finance is timely informed of the amounts of appropriations to be included in the draft state budget;
7.3. draw up draft estimates of programmes being implemented.
8. State budget appropriation managers and heads of their subordinate budgetary bodies and other entities shall bear responsibility for the correctness of the draft estimates of their programmes.
9. Together with their draft programmes and draft estimates of such programmes, state budget appropriation managers may submit to the Ministry of Finance alternative programmes and draft estimates, i.e. several variants of certain programmes, including special and inter-institutional programmes to be implemented in cooperation with other state budget appropriation managers or their subordinate budgetary bodies and other entities. Such alternatives shall be within the total maximum amount of state budget appropriations.
10. State budget appropriation managers shall submit their approved (adjusted) strategic activity plans (including programmes listed in the order of priority and draft estimates of such programmes) to the Ministry of Finance. Ministries (including institutions under the ministries), Government bodies and county governors shall also send their strategic activity plans to the Office of the Government of the Republic of Lithuania.
11. Having examined the comments and recommendations of the Office of the Government of the Republic of Lithuania and the Ministry of Finance on the strategic activity plans for the respective year submitted to them, the Strategic Planning Committee of the Government of the Republic of Lithuania shall take a decision on the priorities of the draft national budget.
12. Taking into consideration the decisions of the Strategic Planning Committee of the Government of the Republic of Lithuania, state budget appropriation managers shall adjust their strategic activity plans for the respective year, the draft estimates of state budgetary programmes (together with the relevant calculations) and applications for public investments and shall submit these to the Ministry of Finance within 10 working days of the relevant decision of the Strategic Planning Committee.
13. Taking due account of the Programme of the Government of the Republic of Lithuania, the Long-Term Development Strategy of the State, the Republic of Lithuania Law on the Budget Structure, other laws and legal acts, macroeconomic projections of the development of the national economy, the projected main indicators of the national budget as approved by the Government of the Republic of Lithuania, the strategic activity plans and programmes as well as the draft estimates of such programmes (together with the relevant calculations) as adjusted by the state budget appropriation managers, and the financial indicators set for municipal budgets, the Ministry of Finance shall draft the Republic of Lithuania Law on the Approval of the Financial Indicators of the State Budget and Municipal Budgets for the respective year.
14. State budgetary revenues and expenditures related to the national debt shall be calculated in accordance with the Methodology of Calculation of State Budgetary Revenues and Expenditures Related to the National Debt as approved by Order No 1 K-087 of the Minister of Finance of 18 March 2004.
15. The Ministry of Finance shall submit the draft Law on the Approval of the Financial Indicators of the State Budget and Municipal Budgets prepared by itself for the respective year to the Government of the Republic of Lithuania. Together with the above-mentioned draft law, the Ministry of Finance shall submit the draft Public Investment Programme and other documents specified in the Republic of Lithuania Law on the Budget Structure and in other legal acts. Having discussed the draft Law on the Approval of the Financial Indicators of the State Budget and Municipal Budgets for the respective year, the Government of the Republic of Lithuania shall send it to the Seimas of the Republic of Lithuania.
16. State budget appropriation managers shall, within five working days of the date on which the Law on the Approval of the Financial Indicators of the State Budget and Municipal Budgets for the respective year comes info force, adjust the allotment of their appropriations by programmes and send this data to the Ministry of Finance. Having received from state budget appropriation managers the adjusted allotments of appropriations by programmes, the Ministry of Finance shall draft a Resolution of the Government of the Republic of Lithuania on the Approval of the Allotment of State Budget Appropriations by Programmes for the respective year and submit it to the Government of the Republic of Lithuania. This Resolution shall specify, for each individual programme of state budget appropriation managers, the total amount of appropriations, appropriations for expenditure (of which for wages) and appropriations for the acquisition of assets. Ministries (including institutions under the ministries), Government bodies and county governors shall, if necessary, adjust their draft strategic activity plans and send these to the Government of the Republic of Lithuania. At the start of the budget year, the Government of the Republic of Lithuania shall approve summary strategic activity plans of ministries and Government bodies. The Office of the Government of the Republic of Lithuania shall, within the deadlines set by the Government of the Republic of Lithuania, post the summary strategic activity plans of ministries (and other institutions at the decision of the Government of the Republic of Lithuania) on the website of the Government of the Republic of Lithuania; ministries and Government bodies shall post their strategic activity plans on their websites.
 
III. estimates of state budgetary programmes
 
17. Once the Government of the Republic of Lithuania approves the allotment of state budget appropriations by programmes, estimates of state budgetary programmes shall be drawn up. Estimates of state budgetary programmes shall be approved according to all items of the functional and economic classifications. The forms of the estimates of state budgetary programmes for the following budget year shall be approved by the Minister of Finance no later than by the end of the current budget year.
18. Estimates of state budgetary programmes shall be drawn up by each state budget appropriation manager and by each subordinate budgetary institution and other entities. Estimates of state budgetary programmes shall be signed by heads of budgetary bodies and other entities or by other persons authorised by them and shall be stamped with a seal (if they are required to have one). State budget appropriation managers or other persons authorised by them shall approve the estimates of state budgetary programmes of their subordinate budgetary bodies and other entities. If the estimates of state budgetary programmes are not approved in time, monthly appropriations of appropriation managers shall not exceed 1/12 of the appropriations allocated in the respective budget for the respective appropriation manager in the previous year.
19. Estimates of state budgetary programmes drawn up by state budget appropriation managers shall be such as to ensure that outstanding commitments of state budget appropriation managers and their subordinate budgetary bodies and other entities incurred in the previous year are covered in the current year without exceeding the amount of state budget appropriations allocated to them for the current year. If the estimates of state budgetary programmes are approved before the drawing up of the report on the implementation of the estimates of state budgetary programmes for the previous year, the estimates of state budgetary programmes of state budget appropriation managers and their subordinate budgetary bodies and other entities for the current year must be adjusted for the actual data on the commitments of these appropriation managers and their subordinate budgetary bodies and other entities outstanding as of the beginning of the year.
Public bodies and institutions which manage European Union funds shall draw up estimates of their programmes by taking account of the current and future financing requirement for the implementation of projects.
20. State budget appropriation managers shall, within 7 workings days of the date of entry into force of the Resolution of the Government of the Republic of Lithuania on the allotment of state budget appropriations by programmes for the respective year, send to the Ministry of Finance consolidated estimates of state budgetary programmes, estimates of each state budgetary programme and estimates of state budgetary programmes of their subordinate budgetary bodies and other entities (programme implementers).
If in the course of the current year the Government of the Republic of Lithuania decides to change the allotment of appropriations by programmes, state budget appropriation managers shall adjust their estimates accordingly and send these to the Ministry of Finance within 5 working days of the date of entry into force of the amendments of the Resolution of the Government of the Republic of Lithuania on the allotment of state budget appropriations by programmes for the respective year. In this case, appropriation managers shall accordingly adjust their strategic activity plans (adjust the relevant forms and/or tables and indicate the Government resolution which is the basis of such adjustments).
21. Proposals to change the allotment of appropriations by programmes and by public functions in the current year may be made to the Government of the Republic of Lithuania by the Ministry of Finance or by other ministries which may propose to change the allotment of their state budget appropriations and those of their subordinate budgetary bodies and other entities. The proposals to change the allotment of appropriations by programmes to be made to the Government of the Republic of Lithuania shall first be agreed on with the Ministry of Finance.
 
IV. special state budgetary programmes
 
22. Income of the budgetary bodies which they receive in carrying out their functions assigned to them by legal acts regulating their activities shall be transferred to the state (municipal) budget, in accordance with laws or resolutions of the Government of the Republic of Lithuania. The amounts to be transferred to the state budget by each state budget appropriation manager shall be set in the state budget of the respective year, at the proposal of state budget appropriation managers themselves.
23. Income of budgetary bodies (other than state fees and charges, stamp duty and rent of fixed assets) shall be used to finance expenditure and other needs of these institutions under relevant special programmes.
24. If necessary, separate estimates of special programmes shall be drawn up for each source of financing.
25. Managers of the special programme of the state reserve shall handle financial accounting of and prepare financial statements on monetary and other resources of the state reserve in accordance with the procedure established for budgetary bodies and separately from the accounting of the implementation of the estimates of state budget or municipal budget appropriation managers (managers of the reserve). Information of this accounting shall be included into the interim and annual consolidated statements on the implementation of estimates of state budgetary programmes of relevant budgetary bodies.
26. Budgetary bodies and state science and studies institutions shall keep their income in a separate account. Payments by budgetary bodies from these accounts to the relevant budget shall be made twice a month, on the 3rd and 18th days of the month, or within three working days of receipt by them of the amount exceeding one thousand litas (when these dates fall on an official holiday or weekend, the payment shall be made on the first working day following such holiday or weekend).
State science and studies institutions shall transfer their income received as charges for services to the state budget at least once a month and on the last working day of each quarter. The amounts paid to the state budget shall be reflected in accordance with the procedure laid down in Order No 164 of the Minister of Finance of 7 June 2001 on the Approval of the Procedure for Accounting in the State Budget of Income of Science and Studies Institutions Received as Charges for Services (Valstybės žinios (Official Gazette) No 55-1954, 2001).
27. Taxes and other payments to the state (municipal) budget and funds shall be allotted in accordance with the Republic of Lithuania Law on the Budget Structure and by tax legislation. In the absence of rules specifying the destination of taxes and other payments to be made to budgets, these shall be transferred to the state budget.
28. Planned expenditure under special programmes may exceed the planned income provided that such special programmes are integrated with other programmes financed from the budget. Such integrated programmes shall first be financed by the appropriations allocated out of income transferred to the budget in the current budget year, without exceeding the plan. In any case, the funding for special programmes shall be reduced by the amount of income that has not been collected (compared with the plan), i.e. appropriation managers shall not have the right to make payment requests for that amount nor use, for a special programme, the amount of funds that has not been paid to the budget.
Special programmes implemented by public bodies or institutions which manage European Union funds shall be financed in accordance with the approved appropriations for commitments, consolidated financing (cash flow) plans drawn up by projects and the procedures governing the actual use of income received from the European Union budget for each estimate of a programme.
29. Budgetary bodies and state science and studies institutions which receive income by virtue of their functions assigned to them by legal acts regulating their activities shall annually draw up estimates of income and of special programmes (one or more estimates for each type of income). Such estimates may also specify appropriations for the main activity of the institution. The estimates shall be approved by state budget appropriation managers or persons authorised by them. Copies of such estimates shall be sent to the Ministry of Finance.
30. Estimates of rural support programmes, special programmes for funding forestry needs and special programmes for the implementation of the agricultural reform shall be approved on a measure level by the Government of the Republic of Lithuania. Estimates, on a measure level, of other programmes shall be approved by the Government of the Republic of Lithuania only in the cases provided for in legal acts.
31. The procedure for drawing up and implementing municipal special programmes shall be established by municipal councils.
 
V. drawing up and approval of municipal budgets
 
32. Municipal budgets shall be drafted in accordance with the Republic of Lithuania Law on the Budget Structure, financial indicators of municipal budgets approved by the Seimas of the Republic of Lithuania, official statistics, social and economic programmes approved by a municipal council, and programmes and draft estimates of programmes of appropriation managers of municipal budgets. Municipalities are advised to draft their budgets by applying the strategic planning and programme-based budgeting principles laid down in the Strategic Planning Methodology, adjusted for their specific needs.
33. Municipal budgets shall be drafted in accordance with the procedure established by the municipality administrator.
34. Appropriation managers of municipal budgets shall, in accordance with the procedure established by the municipality administrator, draw up draft estimates of their programmes and organise the drawing up of draft estimates of programmes of their subordinate budgetary bodies and other entities or of individual measures (projects) of programmes in the following manner:
34.1. issue instructions for the drawing up of draft estimates of programmes of their subordinate budgetary bodies and other entities (broken down, where necessary, to individual measures/projects of programmes) and set deadlines for the submission thereof;
34.2. draw up main projected performance indicators of their subordinate budgetary bodies and other entities, adjusted or newly approved rates of monetary and in-kind expenditures, municipal debt and other indicators as are necessary for the detailed calculation of appropriations provided for in the draft estimates of programmes, and communicate these to their subordinate budgetary bodies and other entities;
34.3. draw up draft estimates of programmes implemented directly (in a centralised way) and of centralised programmes of measures .
35. The deadlines to be set by appropriation managers of municipal budgets for their subordinate budgetary bodies and other entities for the drawing up of draft estimates of their programmes shall be such as to ensure that municipality administrations are timely informed of the amounts of appropriations to be included in the draft municipal budgets. Appropriation managers of municipal budgets and heads of their subordinate budgetary bodies and other entities shall bear responsibility for the correct drawing up of programmes and estimates of programmes.
36. Municipality administrations shall check whether the calculations in the draft estimates of programmes are correct, the principle of economy adhered to and appropriations for covering the outstanding debt planned, and adjust, if necessary (taking into account the overall financial capacity of municipal budgets), the appropriations and include them in the draft municipal budgets.
37. Municipality administrators shall send draft municipal budgets to municipal councils in accordance with the rules of procedure of municipal councils. Municipal councils shall discuss draft municipal budgets taking account of communications from municipal executive institutions and of recommendations and conclusions of committees of municipal councils.
38. Once municipal councils approve municipal budgets, appropriation managers of municipal budgets shall, no later than within 10 working days, approve, by each item of the functional and economic classifications, programmes and estimates of programmes (or individual measures implemented by them) of their own and of their subordinate budgetary bodies and other entities.
39. On the basis of municipal budgets, the quarterly allotment of revenues and the estimates of programmes drawn up in accordance with the procedure established by the municipal administrator, the municipality administration shall draw up a quarterly allotment of municipal budgetary revenue and expenditure on programmes (a list of expenditures) by appropriation managers, programmes, municipal functions and economic classification of expenditure. The allotment shall be approved by the municipality administrator. The quarterly allotment of revenues managed by the State Tax Inspectorate under the Ministry of Finance (hereinafter referred to as the State Tax Inspectorate) shall be agreed on between municipality administrations and local offices of the State Tax Inspectorate.
40. The income tax of individuals shall be planned for municipal budgets on the basis of shares of this tax approved by the Seimas of the Republic of Lithuania. The share of income tax of individuals to be transferred from the State Treasury account to municipal budgets for the equalisation of differences in the income tax of individuals and in the structure of expenditures are predictable; therefore, when a municipal council approves a municipal budget, it may increase or reduce them as any other revenue.
41. In approving revenues of a municipal budget, the amount of funds to be received by the municipality from the state budget shall be determined by the municipal council taking account of the amounts approved by the Seimas of the Republic of Lithuania; and in approving the allotment of appropriations by programmes, the municipal council shall single out the amount of appropriations to be allocated for special programmes.
42. Municipality administrators shall submit the approved municipal budgets to the Ministry of Finance in the forms established by the Minister of Finance. In addition, they shall submit the approved estimates of municipal privatisation funds.
 
VI. budget implementation and reporting
 
43. Once the Seimas of the Republic of Lithuania approves financial indicators of the state budget and municipal budgets for the respective year, the Ministry of Finance shall, at the start of the budget year, decide on the quarterly allotment of state budgetary revenues.
Once the Government of the Republic of Lithuania approves the allotment of state budget appropriations by programs, the Ministry of Finance shall adjust the quarterly allotment of state budgetary revenues and, on the basis of estimates of state budgetary programmes approved having regard to the quarterly allotment of total state budget appropriations, pre-agreed on between state budget appropriation managers and the Ministry of Finance, draw up a quarterly allotment of state budgetary revenue and expenditure on programmes (a list of expenditures) by state budget appropriation managers, programmes, state functions and economic classification of expenditure. The allotment of state budgetary revenue and expenditure on programmes (list of expenditure) shall be approved by the Minister of Finance.
The intermediate bodies shall determine and plan the funds required for the co-financing, together with the European Union structural funds, of measures provided for in the Single Programming Document and assigned to them, and draw up summarised annual estimates of programmes and quarterly allotment of expenditure, taking into account the applicable financing procedures and cash flows projections.
44. The implementation of the state budget shall be organised by the Government of the Republic of Lithuania. The implementation of cash operations of the state budget shall be organised by the Ministry of Finance through credit institutions of the Republic of Lithuania.
45. The implementation of municipal budgets shall be organised by municipality administrators. The implementation of cash operations of municipal budgets shall be organised by municipality administrations through credit institutions of the Republic of Lithuania.
46. The State Tax Inspectorate and the Customs Department under the Ministry of Finance shall submit to the Ministry of Finance a report on taxes and other payments to the budgets and a statement of underpayments, in accordance with the procedure laid down in Order No 1K-019 of the Minister of Finance of 29 January 2003 on the Report on Taxes and Other Payments to the State Budget and Municipal Budgets (Valstybės žinios (Official Gazette) No 13-519, 2003). Local offices of the State Tax Inspectorate shall also specify in these reports the tax payments made by taxpayers directly to municipal budget accounts. The amounts of tax payments so made shall be communicated to the local offices of the State Tax Inspectorate by municipal executive institutions within two working days of the end of a month and in accordance with the procedure established by the municipality administrator and agreed on with local offices of the State Tax Inspectorate. Local offices of the State Tax Inspectorate shall, on the basis of their accounting data and within three working days of the end of a month, send to municipality administrations reports on the collection of revenues by types of revenue.
47. Appropriation managers of the state budget and municipal budgets shall use their budget appropriations for their purpose and submit financial and other reports to the Ministry of Finance and municipal executive institutions in the manner and within deadlines set by the latter two.
48. Taxes, other payments and fees and charges due to the state budget shall be transferred to the State Treasury account in accordance with the procedure laid down in Order No 1K-169 of the Minister of Finance of 20 June 2003 on the Procedure for the Transfer of Payments Due to the State Budget and Other Payments to the State Treasury Accounts (Valstybės žinios (Official Gazette) No 60-2732, 2003).
49. Taxes, other payments and fees and charges due to municipal budgets shall be transferred by local offices of the State Tax Inspectorate to municipal budget accounts within deadlines agreed on with municipality administrators.
50. Funds from the share of income tax of individuals transferred to the State Treasury account for the equalisation of differences in the tax and in the structure of expenditure shall be transferred to municipalities in proportion to the actual collection of the tax.
51. Appropriation managers shall transfer the income received by budgetary bodies, indicating the code assigned to such payment, and municipal budgetary bodies shall transfer their income to the revenue collection account of the relevant local office of the State Tax Inspectorate (unless otherwise provided for in legal acts), and the local office shall record these payments as revenue of the budget from which the institution concerned is financed (municipal councils shall be authorised to set a different procedure for the collection of revenues). State science and studies institutions shall transfer their income to the State Treasury account.
52. All revenues collected as income tax of individuals over the budget year shall be transferred to the revenue collection accounts of local offices of the State Tax Inspectorate according to the shares of the tax approved for the year concerned.
53. The amounts remaining after any overpayments by a taxpayer have been offset against any underpayments shall be refunded in accordance with the Republic of Lithuania Law on Tax Administration (Valstybės žinios (Official Gazette) No 63-2243, 2004).
If the local office of the State Tax Inspectorate runs short of funds for the refund of the overpayment, the local office concerned shall make a written request to the State Tax Inspectorate and the Ministry of Finance to transfer the required amount from the state budget account.
54. Programmes shall be financed from the state budget and municipal budgets in accordance with the allotments of revenue and expenditure of respective budgets.
55. Budget appropriations shall be disbursed to finance only those expenditures which have been approved for the programmes in the state budget and municipal budgets. Budgetary bodies shall be financed in accordance with the approved estimates of programmes.
56. The Ministry of Finance shall be authorised, in accordance with the procedure established by the Minister of Finance, and municipality administrations shall be authorised, in accordance with the procedure established by themselves, to make transfers in the following manner:
56.1. to transfer state budget appropriations and municipal budget appropriations, respectively, directly from budget accounts to suppliers, to pay them for the goods, services and works supplied or provided by them to budgetary bodies;
56.2. to transfer, centrally, to revenue collection accounts of tax administrators the amounts due by budgetary bodies as income tax of individuals and compulsory state social security contributions for their employees, calculated on the amount of funds actually transferred to appropriation managers for the salaries for the previous month;
56.3. to transfer the European Union funds appropriated in the budgets, in accordance with the approved disbursement procedures.
57. Appropriation managers shall not use the European Union support funds and national co-financing funds for other than the European Union projects and programmes.
58. The rules, including the forms, of accounting for and drawing up of reports on the implementation of the state budget and municipal budgets and on the implementation of estimates of programmes of budgetary bodies and other entities shall be approved by the Minister of Finance.
59. At the end of the year, the unspent amounts of targeted appropriations allotted to municipal budgets in the Republic of Lithuania Law on the Approval of the Financial Indicators of the State Budget and Municipal Budgets for the year concerned, also funds allotted to municipal budgets under separate laws or Government resolutions or appropriations used not for their purpose shall be returned to the state budget by transferring them from municipal budget accounts to the State Treasury account no later than by the 10th of January, unless the Republic of Lithuania Law on the Approval of the Financial Indicators of the State Budget and Municipal Budgets for the year concerned provides for otherwise. Targeted appropriations used not for their intended purpose shall also be returned to the state budget.
Temporarily free state budget funds (including unspent appropriations of special programmes) shall constitute the working capital of the state budget to be kept in the State Treasury accounts and shall be used to cover a temporary shortfall of funds (temporary shortfall of revenue and advance payments of the European Union financial support) and to return the unspent appropriations of special programmes (the difference between the amounts paid by a budgetary institution to the state budget, the European Union financial support funds and national co-financing funds, and the funds actually spent).
60. In the event of non-implementation of the state budget, i.e. when the amount of revenue actually collected is less than the planned amount and the working capital of the state budget is not sufficient to cover a temporary revenue shortfall until an appropriate amendment to the budget law is passed according to the established procedure, the programmes shall be financed, on the recommendation of the Ministry of Finance, in accordance with the procedure laid down in the Republic of Lithuania Law on State Treasury (Valstybės žinios (Official Gazette) No 100-2001, 1994, No 33-945, 1999) (with the exception of programmes funded by the European Union and co-financed with national funds). Payment requests submitted by appropriation managers shall be paid in accordance with the Rules for Disbursing State Budget Funds from the State Treasury Account as approved by Order No 195 of the Minister of Finance of 21 July 2000 (Valstybės žinios (Official Gazette) No 65-1976, 2000, No 17-513, 2004). This provision shall not be applicable to special programme funds provided that appropriation managers have paid in their earned revenue.
61. No later than within 15 days of the end of a month, the Ministry of Finance shall draw up, using the data as of the first day of the moth, a report for the previous period on the implementation of the state budget where it shall indicate, cumulatively, the planned and actual data by types of budgetary revenue and by items of the functional classification of expenditure (on a quarterly basis) and shall publish these on its website.
62. The report on the implementation of the state budget covering the implementation of the financial indicators approved for the year concerned, the spending from the Reserve of the Government of the Republic of Lithuania, the shift of over-collected or unspent payments to the budget for the financing of special programmes, including commitment appropriations, and the information on the results of programmes and the implementation of performance indicators, shall be sent to the Government of the Republic of Lithuania by the Ministry of Finance.
63. Municipalities shall submit to the Ministry of Finance annual budget implementation reports. The Ministry of Finance shall draw up a consolidated report on the implementation of municipal budgets and send it, together with the report on the implementation of the state budget, to the Government of the Republic of Lithuania.
64. The Government of the Republic of Lithuania shall examine the report on the implementation of the state budget referred to in item 62 of these Rules and the consolidated report on the implementation of municipal budgets referred to in item 63 of these Rules, take relevant decisions and submit these, in the manner and within the deadlines set in the Statute of the Seimas of the Republic of Lithuania, to the Seimas of the Republic of Lithuania for approval.
 
 
VII. NON-REPAYABLE FINANCIAL AID (MONETARY RESOURCES) RECEIVED BY BUDGETARY BODIES
 
65. Budgetary bodies may use the non-repayable financial aid (monetary resources) received by them for the implementation of their objectives and functions.
66. Such aid shall be accounted for in accordance with the Republic of Lithuania Law on Charity and Sponsorship (Valstybės žinios (Official Gazette) No 21-506, 1993; 61-1818, 2000) and shall be used according to a separate estimate of expenditure approved by the head of the budgetary institution. The estimate shall be agreed on with the aid provider if the contract, if any, on the provision of aid contains such a requirement.
 
VIII. delegated funds, deposits and other funds of budgetary bodies
 
67. Delegated funds of budgetary bodies are funds received from legal or natural persons for the execution of certain delegated tasks. These funds shall be kept in a separate bank account and used according to an estimate of expenditure approved by the delegating person.
68. Once the task is executed, the institution shall send a report to the person who has paid the funds and shall repay the unspent balance of funds, if any, unless otherwise instructed by the delegating person.
69. Deposits of budgetary bodies are funds placed in the temporary custody of a budgetary institution in certain circumstances or under certain arrangements. Deposits funds shall be kept in a separate bank account and shall be repaid, in certain circumstances, to the persons or organizations (hereinafter referred to as the depositors) which they belong to.
70. Budgetary bodies shall have custody of deposits for a certain definite period of time:
70.1. funds repayable to natural persons shall be kept three years from the deadline set in the conditions of repayment of these funds and funds collected from detainees and other persons and kept in deposit accounts of law enforcement institutions (the system of the interior, prosecutor offices and courts) shall be kept six months from the date of dispatch, by a registered letter, of the court judgement ordering to repay the funds to their owner;
70.2. funds repayable to budgetary bodies shall be kept until the end of the year;
70.3. funds repayable to other legal persons shall be kept one year from the deadline set in the conditions of repayment thereof.
71. In the failure by the depositor to withdraw his funds in the set time, the budgetary institution shall transfer them to the relevant budget as budgetary revenues.
72. Other funds of budgetary bodies are funds received from legal and natural persons for financing certain expenditure which has not been included in the estimates of programmes of the budgetary bodies. The category of such funds includes receipts from insurance events, compensations received from organisers of local and foreign events for covering the costs of participation therein, funds for reimbursing the costs of business trips incurred in the previous budget year, funds collected from participants in tenders launched by budgetary bodies, payments by natural persons for the services provided to them by third parties (such as payments by lessees for the supply of energy and water and for other services), and other receipts. These funds shall be used according to the estimate approved by the head of the budgetary institution.
 
 
IX. MANAGEMENT OF THE EUROPEAN UNION FINANCIAL SUPPORT AND NATIONAL CO-FINANCING FUNDS
 
73. Appropriations of the state budget and municipal budgets allocated for the co-financing of EU-funded projects and programmes shall be used as specified in Section IV “Special State Budgetary Programmes” of these Rules
74. European Union structural funds shall be managed in accordance with the Rules for the Administration of the European Union Structural Funds in Lithuania as approved by Resolution No 649 of the Government of the Republic of Lithuania of 31 May 2001.
75. European Union funds (other than those referred to in item 74 of these Rules) shall be received, recorded, reallocated, transferred, monitored and reported on in accordance with the procedure laid down in international agreements between the European Community and the Republic of Lithuania or in other legal acts concerning the relevant programmes of the European Union.
 
 
X. IMPLEMENTATION OF THE RIGHTS AND OBLIGATIONS OF APPROPRIATION MANAGERS UNDER THE REPUBLIC OF LITHUANIA LAW ON THE BUDGET STRUCTURE
 
76. In the need to shift budget appropriations from one item of the functional or economic classification to another or within the same functional group, state budget appropriation managers and municipal budget appropriation managers shall send a written notification to the Ministry of Finance and municipality administrations, respectively.
77. State budget appropriation managers shall change estimates of programmes of institutions provided that they have sent notifications of changes in budget appropriations to the Ministry of Finance, where such changes are made:
77.1. in accordance with laws and resolutions of the Government of the Republic of Lithuania;
77.2. to change the quarterly allotment of appropriations;
77.3. as a consequence of changes in the special programmes due to extra income received in the current year or funds unspent in the previous year;
77.4. as a result of increase of appropriations for wages under special programmes due to extra income received in the current budget year;
77.5. as a result of increase of expenditure on the acquisition of assets at the expense of other expenditure appropriations (provided that no debt exists).
78. Appropriation managers shall be authorised to cover debts from the funds saved on the total appropriations for expenditure (except on the European Union financial support and national co-financing funds) without changing the approved estimates, irrespective of the allotment of appropriations by functions and programmes. Such savings on the approved appropriations for expenditure shall be used no later than ten days before the close of the budget year.
79. If appropriations for expenditure are shifted from one item of the economic classification to another or if the above-mentioned savings are used for the acquisition of assets, estimates shall be changed accordingly. The savings shall first be used to cover debts (at maturity). In the absence of debts, the savings may be used for the acquisition of assets and for the implementation of state-funded investment projects (those included in the Public Investment Programme).
80. The procedure for shifting municipal budget appropriations and covering debts shall be set by municipal councils in accordance with the provisions of the Republic of Lithuania Law on the Budget Structure.
 
 
 
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