ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2009
  • © Brno University of Technology, 2002-2009
  • © University of Latvia, 2002-2009
Decentralisation of Lithuanian Public Finance in Transition: Intergovernmental Approach
Gerda Žigienė

ABSTRACT. The literature on the public finances in transition countries has tended to focus on the issues of rapid administrative reforms, privatisation process, governance and macroeconomic stabilisation policies. Decentralisation is thus a key dimension of the national transition from a command to a market economy. Like the broader economic transition, it requires many, often difficult, reforms. The formation of local government and the improvement of territorial administrative organisation were initiated in Lithuania prior to restoration of independence. However, decentralisation is a concept which is leading to radical change in constitutional, financial and other structures in the country. It is well known that functional decentralisation has to be followed by reorganisation of public finances and intergovernmental fiscal relations.

KEYWORDS: decentralisation, intergovernmental fiscal relations, equalisation system, grant transfers, Lithuania.

JEL classification: E42, E62, P2.

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Scholarly papers Transformations in Business & Economics
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