Savivaldybių biudžetai ir jų valdymas

Abstract

The aim of the work is to present structure and functions of public finances, main principles of budget forming in state and municipality levels, main problems of preparing and implementing of budget projects, to analyze experience of foreign countries and their influence to Lithuanian financial system. Economic and political surrounding is changing in Lithuania, local authorities functions are changing as well, society interest to public management structure, decisions is also growing. When developing public management system in Lithuania, issues on competences and responsibilities of municipality council members and administration employees are relevant. When political forces are changing in municipality council, budget and finances are main topics in political discussions, and after discussions the frames of financial activities of the state and municipality are set. There are analyzed such questions: is local self-government really independent self-government, what are real possibilities of municipality council members to influence budget revenue and expenditure forming of municipality. In this master work there is presented development of financial system, functions, foreign countries experience in public finance management, state and municipality budget preparation and implementation, main principles of budget forming. It is visible, that municipalities are lack of long term strategic financial resources planning skills, there are no clear priorities of financial activities. In this master work there are analyzed sources of budget revenues, questions of expenditure forming and financing, effective usage of received revenues from taxes. For municipalities the question of usage of lent capital is very relevant, because sometimes such resources are used not for investments, but to finance running expenditure or loans. In practical part of this work there is analyzed financial management of municipalities, budget preparation, conforming, implementing, revenue and expenditure structure and development tendencies of Lithuanian and German municipalities. An author is looking for reasons why so many Lithuanian municipalities have many big financial problems. There are presented legislation of municipality budget revenue determination method, their advantages and shortages. At the end of work there are given conclusions and recommendations.