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1. Lithuania is a country that has deep roots of local self–government. This forms the historical heritage of Lithuanian local self-government. This heritage lies in the nation's memory and continues to influence the local-governmental awareness of Lithuanian people and public policy makers. This heritage has been having an impact on the development of the local self-governmental system in Lithuania since 1990. 2. The period from 1990 to this day is an interesting, meaningful and significant period for the evolution of local self-government in Lithuania. During this period, after 50 years of being only a supplement to the central state government and an obedient executor of the state policy shaped by it, the local governmental system, varied with sham local democracy elements, has been transformed into a modern, Western–type democratic local self– governmental system. 3. The events that have taken place during this period and the nature of these events provide reasonable grounds to divide the period from 1990 to the present day into three stages with regards to the evolution of local self–government : a) 1990–1995, b) 1995–2000 and c) since 2000. 4. The first stage (1990–1995) was difficult, complex and contradictory. During the first stage the evolution process of the local self-governmental system took place in two directions: 1) abrogating the old (Soviet, socialist) local governmental system and creating a new (democratic, Western-type) local self-governmental system in compliance with the provisions of the Law on the Fundamentals on Local Government adopted on the 12th of February 1990 and 2) learning from the past mistakes; analysing the experience accumulated by other countries; searching and selecting a local self–government organization model which would be most suitable for Lithuania as well as of the country (a group of countries) the best practice of which could be used in a creative manner. 5. During the first stage (1990–1995) for some reasons, the development of a new (democratic, Western-type) local self-governmental system in Lithuania was not consistent and as successful as it sought to. Lithuania was "gradually" returning to the former times of the centralized management. Fortunately, the return to the former times was stopped by the Constitution of the Republic of Lithuania which was adopted by the people's referendum of 25 October 1992 and entered into force on 6 November 1992. 6. Although during the first stage (1990–1995) various local self-government theories, local self-government organization models and best practices of other countries in that area were consistently examined, it was decided that at that stage it was most relevant to focus on the British model of organization of local self–government based on the state theory of local government and to adapt many of its elements. 7. The second stage of the evolution of the Lithuanian local self-governmental system (1995–2000) – was the period when Lithuania completely established a modern, Western-type democratic local self-governmental system and when it was decided to change the reference points of the Lithuanian local self-governmental system (the theory of local self-government, a local self-government organization model, the country (a group of countries) the best practice of which would be used. During the second stage a lot of interesting events (changes) took place. However, during the second stage of the Lithuanian local self–governmental system development not every action was as successful as expected. 8. The third local self-government development stage in Lithuania began at the end of 2000, when a revised version of the Law on Local Self-Government came into force, and continues to this day. In this third stage, although a lot has been achieved in the field of local self-government, but there are quite a few problems. This is also indicated by Recommendation No 321 for Lithuania adopted by the Congress of Local and Regional Authorities of the Council of Europe, which identified the main problem areas and indicated possible ways to address them. ; Lietuva – šalis, kuri turi gilias vietos savivaldos šaknis. Tai sudaro Lietuvos vietos savivaldos istorinį paveldą. Šis paveldas glūdi tautos atmintyje, jis darė ir tebedaro poveikį vietos savivaldos sistemos raidai Lietuvoje nuo 1990 m. iki šių dienų. Laikotarpis nuo 1990 m. iki šių dienų – įdomus, turiningas ir reikšmingas vietos savivaldos raidos Lietuvoje laikotarpis. Po 50 metų buvimo tik centrinės valstybės valdžios priedėliu ir jos suformuotos valstybės politikos paklusniu vykdytoju vietos valdymo sistema, paįvairinta butaforinės vietos demokratijos elementais, pertvarkyta į šiuolaikišką vakarietiškojo tipo, demokratinę vietos savivaldos sistemą. Šiuo laikotarpiu vykę įvykiai ir šių įvykių pobūdis pagrįstai leidžia laikotarpį nuo 1990 m. iki šių dienų vietos savivaldos raidos aspektu skirstyti į 3 etapus: a) 1990–1995 m., b) 1995–2000 m., c) nuo 2000 m. Šiame straipsnyje sistemiškai (pagal tuos pačius elementus) apibūdinami visi trys vietos savivaldos sistemos Lietuvoje raidos etapai. Šis straipsnis yra parengtas pranešimo, perskaityto Tarptautinėje konferencijoje "Valstybės tarnyba ir viešasis administravimas Lietuvoje ir Centrinėje Europoje: raida, patirtis ir geroji praktika", vykusioje Mykolo Romerio universitete 2015 m. rugsėjo 23 d., pagrindu.

There are many research papers on local self-government from 1990s till present in Lithuania. However, according to the author, there is a lack of research papers where the Lithuanian local self-government system would be analysed ystematically. The author has published several articles in the academic journal Public Policy and Administration. In this article, the author, by way of creative analogy, presents his approach as to who is granted the right to (local) self- government and who enjoys this right (i.e., what is the subject of the right to (local) self-government) as well as explains who, in his opinion, enforces the right to (local) self-government and how. Summarizing the results, the author presents the following conclusions: 1. Interpreting the first paragraph of Article 119 of the Constitution of the Republic of Lithuania "The right to self-government shall be guaranteed to administrative units of the territory of the State, which are provided for by law. It shall be implemented through corresponding municipal councils", the following questions remain unanswered: what subject is guaranteed (granted) the right to (local) self-government? Is a municipal council really the only local authority through which the right to (local) self-government is implemented? 2. The systematic analysis of provisions on guaranteeing (granting) and implementing the right to (local) self-government, established in the Constitution of the Republic of Lithuania, rulings and decisions of the Constitutional Court of the Republic of Lithuania, the Republic of Lithuania Law on Local Self-Government, and the European Charter of Local Self-Government, suggests that: (a) three subjects may be considered as the subjects of the right to (local) self-government in Lithuania; (b) the developers of the constitutional doctrine of (local) self-government chose the territorial (local) community as the subject of the right to (local) self-government by applying analogy (the Constitution stipulates that sovereignty belongs to the Nation); (c) by making the subject of the right to (local) self-government equal to the Nation State (sovereign that has the supreme power in the state), the developers of the doctrine applied the analogy in respect of the implementation of the right to (local) selfgovernment: they essentially saw the implementation of the right to (local) self-government and exercise of the supreme power in the municipality as the same, the latter being exercised through the representative municipal (self-government) institution. 3. It is stated that in Lithuania, which belongs to the countries with the continental legal system and where the theory of dual local self-government is followed for interpreting the origin of local municipalities and the nature and content of local self-government, the right to independently deal with local matters (or otherwise, right to (local) self-government in a wider sense) is guaranteed (granted) to the local municipality, an organised territorial social body that is composed of permanent residents in a territorial administrative unit established by law, that has the status of a public legal person and that has the competence established (defined) by the state. 4. Guaranteeing (granting) the right to self-government to the residents of the territorial administrative unit is a process lasting for a defined time rather than a single action of the state. During the process, major qualitative changes take place in the life of residents (to be accurate, in their communication and their governing) of the territorial administrative unit, and some decisions adopted and actions taken on the national level give shape to a territorial, organised social body (local municipality) that has a legal status and the competence defined by the state. 5. Creatively applying the analogy, it may be asserted that: a) the right to self-government (right to (local) self-government in a broader sense) elonging to a local municipality is the right of a territorial organised community (local municipality) and the real power to exist (act) as a legally independent, self-governing and autonomous social body; in this case, the subject of the right to (local) self-government (in a broader sense) is a local municipality, and (b) the right to self-government (right to (local) self-government in a narrower sense) belonging to a municipal community is the right of a municipal community as of a special local municipal structural element to directly or through a municipal council (representative body of a local municipality) exercise, in the ways prescribed, the supreme power in the local municipality when dealing with local (public) matters within the competence of the local municipality; in this case, the subject of the right to (local) self-government (in a narrower sense ) is a municipal community. ; Lietuvoje apie vietos savivaldą paskelbta nemažai mokslo darbų. Vis dėlto mokslo darbų, kuriuose vietos savivalda būtų tyrinėjama sistemiškai, dar labai trūksta. Šio straipsnio autorius yra nagrinėjęs daugumą vietos savivaldos sistemos elementų ir vertinęs skirtingu laiku Lietuvoje pasireiškusią šios sistemos elementų specifiką ir problematiką. Pastaruosius keletą metų autorius rengia apibendrinamojo pobūdžio apžvalgas apie Lietuvos vietos savivaldos sistemą ir jos kaitos dėsningumus per tam tikrą istorinį laikotarpį. Moksliniame leidinyje "Viešoji politika ir administravimas" autorius jau yra paskelbęs keletą straipsnių [2, 3], kuriuose per daugiau kaip dvidešimt metų sukauptų žinių ir įgytos asmeninės praktinės patirties teisėkūros ir teisės aktų įgyvendinimo procesuose pagrindu, pasinaudodamas kitų mokslininkų vertingomis išvadomis ir pastebėjimais, pateikė savo požiūrį į įvairius vietos savivaldos sistemos elementus ir jų vertinimus. Šiame straipsnyje autorius toliau tęsia vietos savivaldos sisteminį nagrinėjimą ir, kūrybiškai pasinaudodamas analogija, pateikia savo požiūrį į tai, kam Lietuvoje laiduojama (vietos) savivaldos teisė (t. y. kas yra (vietos) savivaldos teisės subjektas) ir kaip, autoriaus nuomone, ji įgyvendinama.

This article seeks to lay a theoretical foundation of the internal decentralization (decentralization in the local municipality): its essence and content are defined, the main forms as well as the kinds of forms are identified. This Is performed by using theoretical propositions of decentralization in the state (at the state level) following different researchers' works and verifying whether they are suitable for local municipalities of Lithuania and other countries. In the article the set goal is being sought by these actions: 1) the origin and the meaning of the word "decentralization" are explained; 2) the essence and the content of decentralization in the state (at the state level) are defined; 3) the essence and the content of decentralization in the local municipality are defined, its main forms and kinds of forms are named; 4) currently the most frequently applied forms of internal decentralization in local municipalities of other countries are submitted. In the opinion of the author of the article, decentralization in the local municipality for internal decentralization in the local municipality) means the transfer of the powers assigned to municipal bodies, which belong to a higher hierarchical level, to a subordinate or non-subordinate bodies, which belong to a lower hierarchical level, or division of powers to a bigger number of bodies of the same hierarchical level. The bodies that have received these powers are guaranteed some discretion to make decisions and operate. Moreover, a certain interaction (relations, responsibilities) between the bodies that have transferred the powers and the ones that have received those powers is foreseen. From the author's of the article point of view, the internal decentralization in the local municipality is performed by these forms: 1) deconcentration; 2) transfer of powers (delegation); 3) fiscal decentralization; 4) economic decentralization. The author thinks that at present the most frequently applied forms of internal decentralization in municipalities of different countries are the following ones: 1) composition of branch and/or functional committees (commissions) of municipal councils and transfer of powers (delegation) to them to operate and to adopt decisions on behalf of the municipal council; 2) transfer of a part of powers (delegation) of municipal councils (representative government institutions) to the executive institution; 3) application of different ways of economic decentralization, starting with the most ordinary and gradually moving to the introduction of more complicated forms of PPP (Public Private Partnership); 4) transfer of powers (delegation) to the territorial communities (with executive bodies) of residential areas or their parts; 5) transfer of powers (delegation) to communal organizations, frequently called neighbourhood communi ties"; 6) transfer of powers (delegation) to the self-government bodies of schools, to public services consumers' protection councils or bodies of a similar type; 7) composition of structural-territorial subdivisions of the municipal administration (with different legal status) and transfer of powers (delegation) to them to manage the affairs of the inhabitants of one or several residential areas, to provide basic administrative and/or public services. ; Straipsnyje apibrėžiama decentralizacija vietos savivaldybėje (sinonimai - vidinė decentralizacija, vidinė decentralizacija vietos savivaldybėje): aiškinama jos esmė ir turinys, nurodomos jos pagrindinės formos: dekoncentravimas, įgaliojimų perdavimas, finansinė decentralizacija, ekonominė decentralizacija. Apibrėžiant decentralizaciją vietos savivaldybėje vadovaujamasi nuostata, kad ji savo esme, turiniu ir formomis yra labai panaši į decentralizaciją tokioje labai sudėtingoje socialinėje sistemoje (teritoriniame socialiniame junginyje) kaip valstybė. Todėl tai, kas tinka apibūdinant decentralizaciją valstybėje, dialektiškai gali būti panaudota ir apibrėžiant decentralizaciją vietos savivaldybėje. Taip pat rašoma apie tai, kokios decentralizacijos formos dabartiniu metu dažniausios Lietuvos ir kitų šalių vietos savivaldybėse.

There are many research papers on local self government since 1990s till present in Lithuania. However, according to the author, there is a lack of research papers where the dynamic (changing) Lithuanian local self government system would be analyzed systematically (i.e. not just a separate aspect (element) but the entire local self-government system consisting of separate and linked together aspects (elements)). The author had published several articles in the academic journal "Public policy and administration". In this article the author presents opinion and judgment based on more than twenty years' worth of gathered knowledge about such aspects of local self-government system as system of administrative-territorial units, the national and international legal acts regulating local self government, the main definitions – local municipality and local authority – as well as their development throughout the period of 1990 till present and the like.

There are many research papers on local self government since 1990s till present in Lithuania. However, according to the author, there is a lack of research papers where the dynamic (changing) Lithuanian local self government system would be analyzed systematically (i.e. not just a separate aspect (element) but the entire local self-government system consisting of separate and linked together aspects (elements)). The author had published several articles in the academic journal "Public policy and administration". In this article the author presents opinion and judgment based on more than twenty years' worth of gathered knowledge about such aspects of local self-government system as system of administrative-territorial units, the national and international legal acts regulating local self government, the main definitions – local municipality and local authority – as well as their development throughout the period of 1990 till present and the like.

There are many research papers on local self government since 1990s till present in Lithuania. However, according to the author, there is a lack of research papers where the dynamic (changing) Lithuanian local self government system would be analyzed systematically (i.e. not just a separate aspect (element) but the entire local self-government system consisting of separate and linked together aspects (elements)). The author had published several articles in the academic journal "Public policy and administration". In this article the author presents opinion and judgment based on more than twenty years' worth of gathered knowledge about such aspects of local self-government system as system of administrative-territorial units, the national and international legal acts regulating local self government, the main definitions – local municipality and local authority – as well as their development throughout the period of 1990 till present and the like.

There are many research papers on local self government since 1990s till present in Lithuania. However, according to the author, there is a lack of research papers where the dynamic (changing) Lithuanian local self government system would be analyzed systematically (i.e. not just a separate aspect (element) but the entire local self-government system consisting of separate and linked together aspects (elements)). The author had published several articles in the academic journal "Public policy and administration". In this article the author presents opinion and judgment based on more than twenty years' worth of gathered knowledge about such aspects of local self-government system as system of administrative-territorial units, the national and international legal acts regulating local self government, the main definitions – local municipality and local authority – as well as their development throughout the period of 1990 till present and the like.

In this article a presently existing public administration system in Lithuania as well as the position of municipalities (subjects of local self–government) in that system are described, the features of the "real" local self–government are being formulated, potentially possible groups of problems of local self–government are distinguished and currently main problems of municipalities of Lithuania are indicated. The author of the article notes that in Lithuania up till now the concept of the "real" local self–government has not been clearly and unambiguously defined yet. That makes the formulation of target goals, tasks and means as well as their implementation developing the system of local self–government more difficult. Seeking at least partly to fill the existing gap, the author of the article formulates eight features of the "real" local self–government. Having defined the problem of local self–government as a deviation from the "normal" conditions for the functioning of the local self–government system that cause negative changes in the system, the author of the article shows the relationship between the "normal" conditions for the functioning of local self–government and the formulated features of the "real" local self–government. According to this relationship the author of the article indicates eight potentially possible groups of problems of local self–government. On the basis of the accumulated knowledge and acquired experience the author of the article points out five groups of currently particularly important problems for local self–government of Lithuania, which are conditionally named as follows: 1) suppressed independence; 2) insufficient constructiveness of the relationship among different levels of government; 3) economic problems of municipalities; 4) not involving community members in managing local affairs; 5) inertness of municipalities.

In this article a presently existing public administration system in Lithuania as well as the position of municipalities (subjects of local self–government) in that system are described, the features of the "real" local self–government are being formulated, potentially possible groups of problems of local self–government are distinguished and currently main problems of municipalities of Lithuania are indicated. The author of the article notes that in Lithuania up till now the concept of the "real" local self–government has not been clearly and unambiguously defined yet. That makes the formulation of target goals, tasks and means as well as their implementation developing the system of local self–government more difficult. Seeking at least partly to fill the existing gap, the author of the article formulates eight features of the "real" local self–government. Having defined the problem of local self–government as a deviation from the "normal" conditions for the functioning of the local self–government system that cause negative changes in the system, the author of the article shows the relationship between the "normal" conditions for the functioning of local self–government and the formulated features of the "real" local self–government. According to this relationship the author of the article indicates eight potentially possible groups of problems of local self–government. On the basis of the accumulated knowledge and acquired experience the author of the article points out five groups of currently particularly important problems for local self–government of Lithuania, which are conditionally named as follows: 1) suppressed independence; 2) insufficient constructiveness of the relationship among different levels of government; 3) economic problems of municipalities; 4) not involving community members in managing local affairs; 5) inertness of municipalities.

The article aims, on the basis of theoretical knowledge and accumulated information from the individual Lithuanian municipalities, to analyse the currently existing legislation and the actual situation in applying the principles and methods of municipal budget formation. It is, inter alia, designed to identify the major problems in this sector and, drawing on the useful experience of other countries, to offer solutions to these problems.The author of the article has drawn the following conclusions:1. The legislation regulating municipal budget formation, administration, accounting and its supervision is outdated and therefore requires an accelerated change taking into account the useful experience of other states, as well as the specifics of Lithuania.2. Public institutions responsible for the management of methodological issues of municipal budget formation fail to prepare in due time new normative acts, do not take a profound approach to the solution of existing problems and are not willing to contract the most-advanced experts and employ their expertise.3. The normative acts of Lithuania do not provide for the principles of municipal budget formation, which are well established in the finance theory. Some of the principles, however, are implemented, as other laws have binding, although indirectly, provisions on municipalities in this respect. On the other hand, most of the principles, even after legitimising them, could not be put into practice because of the currently existing relations between public authorities and municipal institutions, and the limited rights and possibilities of municipalities to increase their revenue.4. Financial resources and funds of municipalities which are necessary to carry out the functions prescribed to them by law are not balanced out, i.e. the actual rather than the formal principle of budget balance is violated.5. The level of estimated municipal budget revenue is determined by public institutions rather than municipalities themselves; the rights of municipalities to fix the tax derived revenues tariffs and local fees independently are minimal; greater autonomy is granted to municipalities in planning non-tax derived revenues and the potential in this field has not yet been fully exhausted.6. The municipal system provides for minimum conditions which allow the interested and active members of the community to participate in the drafting of the budget; as a rule, observations and proposals from the residents are desirable, yet, the majority of municipalities tend to publish the approved budget rather than a draft budget before it is approved and do not seem to search for more attractive ways ensuring a more lively interest and broader participation of the public in the budget drafting process; instead, most primitive forms are employed.7. Lithuania's legislation does not provide for the methods of municipal budget formation and their application. Therefore, municipalities, being short of both the necessary expertise and recommendations, draft budgets at their own discretion.8. The decision to give priority to a programme-based budget formation principle and implement it in the municipal system as of 2000, has raised serious doubts because of the shortage of professional proficiency of the personnel, lack of methods, high expenditure relating to the implementation of this method and the absence of well-functioning system of strategic management, which has not yet been developed.The solutions to the problems involve:1. The most expeditious change of legislation, which does not provide so far for municipal budget formation, implementation, accounting and supervision, to meet the present-day requirements and to be consistent with other legal acts. The best solution would be to draft and pass a special law on municipal budget, which would specify the sources of municipal revenues, the procedure for general and earmarked subsidising, set the mechanism for balancing out the financial capacities and required expenditures, establish the life cycle of the budget as well as the methods of budget formation etc.2. Drafting and adopting legal acts which would allow the municipalities to establish tariffs for local fees and fix local charges, provide for conditions and interest in increased municipal revenues and a more fair and transparent allocation of subsidies. It would enhance the municipal financial capacity, help to balance out municipal budgetary revenues and expenditures required to carry out the functions prescribed by law, i.e. to put into practice the principle of balanced budget - the most important principle today.3. Transition period is required for gradual implementation of the method of programme-based municipal budget formation, along with detailed and clearcut recommendations and measures for applying this method as well as prior training of municipal politicians and experts.Critical assessment of other methods of municipal budget formation and the possibilities of their application could lead to the selection of the most suitable ones and, in cases where the advantage of their application is evident, to their statutory provision.1. Lithuanian Municipalities' Association could take up a responsibility of regularly summarising and spreading the best practice of the Lithuanian and other countries' municipalities on:• the planning of long-tenn investments; establishing the procedure for drafting, consideration and approval of a budget; assessment of results of financial audit performed at municipalities;• the most justifiable ways for debating the draft budget in public. ; Remiantis straipsnio autoriaus turimomis teorinėmis žiniomis ir iš atskirų Lietuvos savivaldybių surinkta informacija apžvelgiama dabar Lietuvoje egzistuojanti teisinė bazė ir esama savivaldybių biudžetų sudarymo ir vadybos situacija, iškeliamos svarbiausios problemos bei pasiūlomi būdai ir galimybes tas problemas spręsti; be to, siekiama paskatinti specialistus teoretikus ir praktikus kritiškai įvertinti straipsnyje pateiktus teiginius, pasidalyti savo žiniomis ir patirtimi, pasiūlyti būdų ir priemonių spręsti aktualius savivaldybių biudžetų sudarymo ir vadybos klausimus.

In recent decades the world saw a growing tendency of decentralization manifesting itself in federal and unitary states as well as developing and developed countries.After the restoration of Lithuania's independence, decentralization has affected political, administrative and economic systems. A more effective system of public administration has been pursued in the country by way of the development of local municipalities.Within more than a decade of independence in Lithuania municipalities have become stronger and gained a wide range of functions and rights. However, on the level of self-government financial autonomy has been low and fiscal decentralization yet rather poorly developed. The main obstacles to the performance of systems on the level of local self-government and public administration are seen to lie in the present financial situation of municipalities and the low level of fiscal decentralization in the country.The object of this research is fiscal decentralization and the form it assumes in Lithuania as well as the restricted financial autonomy of municipalities. The research aims at elucidating the concept of fiscal decentralization, analysing the present financial situation of municipalities and the way fiscal decentralisation is manifest in Lithuania, corroborating the idea of restricted financial autonomy of municipalities and suggesting ways to improve the present situation.The goal of the present investigation has assumed the following objectives: to explain the conception of fiscal decentralization; to discuss the manifestation of fiscal decentralization in Lithuania and look at the actual financial situation of municipalities from the points of view of their financing of functions. tax revenue. fiscal transfers and borrowing mechanisms; to corroborate the restricted financial autonomy of municipalities in terms of four constituents of fiscal decentralization by taking quantitative and qualitative dimensions as a basis; to produce guidelines as to the ways the financial autonomy of municipalities in Lithuania may be increased with the aim to enhance the performance of local self-government. ; Šio straipsnio tikslas - apžvelgti fiskalinę decentralizaciją Lietuvoje, atskleisti savivaldybių finansinio savarankiškumo ribotumą ir pateikti galimų problemų sprendimo būdų. Straipsnio pirmoje dalyje pateikiama fiskalinės decentralizacijos samprata, antroje dalyje nagrinėjamos savivaldybių finansinio savarankiškumo problemos Lietuvoje, o trečiojoje - pateikiami galimi iškeltų problemų sprendimo būdai.