Master's thesis reveals the participatory budget concept and development stages, analyze the financial aspect of the participatory budget features. Estimated situation of Citizen participation in the budget process, participatory budget and development opportunities for Lithuanian municipalities. The first section examines democracy and political participation theory. Analyze the participatory budget concept, advantages and disadvantages. Study the method of participatory budget, how has it emerged and its development. The second chapter analyzes the participatory budget process related costs, revenues and expenses, the economic benefits of the method. The third section presents the research assumptions and expert survey data analysis.
Master's thesis reveals the participatory budget concept and development stages, analyze the financial aspect of the participatory budget features. Estimated situation of Citizen participation in the budget process, participatory budget and development opportunities for Lithuanian municipalities. The first section examines democracy and political participation theory. Analyze the participatory budget concept, advantages and disadvantages. Study the method of participatory budget, how has it emerged and its development. The second chapter analyzes the participatory budget process related costs, revenues and expenses, the economic benefits of the method. The third section presents the research assumptions and expert survey data analysis.
This master's thesis analyzes the process of forming (planning) the budgets of municipalities of the Republic of Lithuania, based on the practice of Šilutė District Municipality. On purpose to reveal the peculiarities of this procedure, the work also examines the concept of budget, the place of municipal budgets in the budgetary system of the Republic of Lithuania, discusses the structure of municipal budgets and the influence of its structural components - income and expenditure - on the formation of municipal budgets. The relevance of the topic is that the creation of municipal budgets, the preparation of a revenue and expenditure plan for the fiscal year, are one of the most important stages of the budgetary process, which influences the realization of the balanced budget principle. Recently it is becoming increasingly difficult for municipalities to implement this principle. Therefore, it is necessary to analyze municipal budgets in more detailed the formation of municipal budgets by finding ways to create efficient and targeted budgets. For this reason, the problem of the autonomy of municipalities in the planning of their budgets was raised and formulated in this work. The application of the analysis of legislation and legal doctrine has allowed to establish that despite the validity of the concept of fiscal decentralization in Lithuania, the autonomy of municipalities in determining budget revenues and planning of expenditures is very limited. However, it is revealed that municipalities are sufficiently independent in regulating their budgeting procedures. As a result, the work also emphasizes that the procedures for drawing up budgets of different municipalities may be regulated by different local regulations. To reveal the topic of the Master's thesis and to achieve the purpose of the work was used descriptive, logical, systemic, historical and linguistic methods.
This master's thesis analyzes the process of forming (planning) the budgets of municipalities of the Republic of Lithuania, based on the practice of Šilutė District Municipality. On purpose to reveal the peculiarities of this procedure, the work also examines the concept of budget, the place of municipal budgets in the budgetary system of the Republic of Lithuania, discusses the structure of municipal budgets and the influence of its structural components - income and expenditure - on the formation of municipal budgets. The relevance of the topic is that the creation of municipal budgets, the preparation of a revenue and expenditure plan for the fiscal year, are one of the most important stages of the budgetary process, which influences the realization of the balanced budget principle. Recently it is becoming increasingly difficult for municipalities to implement this principle. Therefore, it is necessary to analyze municipal budgets in more detailed the formation of municipal budgets by finding ways to create efficient and targeted budgets. For this reason, the problem of the autonomy of municipalities in the planning of their budgets was raised and formulated in this work. The application of the analysis of legislation and legal doctrine has allowed to establish that despite the validity of the concept of fiscal decentralization in Lithuania, the autonomy of municipalities in determining budget revenues and planning of expenditures is very limited. However, it is revealed that municipalities are sufficiently independent in regulating their budgeting procedures. As a result, the work also emphasizes that the procedures for drawing up budgets of different municipalities may be regulated by different local regulations. To reveal the topic of the Master's thesis and to achieve the purpose of the work was used descriptive, logical, systemic, historical and linguistic methods.
This master's thesis analyzes the process of forming (planning) the budgets of municipalities of the Republic of Lithuania, based on the practice of Šilutė District Municipality. On purpose to reveal the peculiarities of this procedure, the work also examines the concept of budget, the place of municipal budgets in the budgetary system of the Republic of Lithuania, discusses the structure of municipal budgets and the influence of its structural components - income and expenditure - on the formation of municipal budgets. The relevance of the topic is that the creation of municipal budgets, the preparation of a revenue and expenditure plan for the fiscal year, are one of the most important stages of the budgetary process, which influences the realization of the balanced budget principle. Recently it is becoming increasingly difficult for municipalities to implement this principle. Therefore, it is necessary to analyze municipal budgets in more detailed the formation of municipal budgets by finding ways to create efficient and targeted budgets. For this reason, the problem of the autonomy of municipalities in the planning of their budgets was raised and formulated in this work. The application of the analysis of legislation and legal doctrine has allowed to establish that despite the validity of the concept of fiscal decentralization in Lithuania, the autonomy of municipalities in determining budget revenues and planning of expenditures is very limited. However, it is revealed that municipalities are sufficiently independent in regulating their budgeting procedures. As a result, the work also emphasizes that the procedures for drawing up budgets of different municipalities may be regulated by different local regulations. To reveal the topic of the Master's thesis and to achieve the purpose of the work was used descriptive, logical, systemic, historical and linguistic methods.
This master's thesis analyzes the process of forming (planning) the budgets of municipalities of the Republic of Lithuania, based on the practice of Šilutė District Municipality. On purpose to reveal the peculiarities of this procedure, the work also examines the concept of budget, the place of municipal budgets in the budgetary system of the Republic of Lithuania, discusses the structure of municipal budgets and the influence of its structural components - income and expenditure - on the formation of municipal budgets. The relevance of the topic is that the creation of municipal budgets, the preparation of a revenue and expenditure plan for the fiscal year, are one of the most important stages of the budgetary process, which influences the realization of the balanced budget principle. Recently it is becoming increasingly difficult for municipalities to implement this principle. Therefore, it is necessary to analyze municipal budgets in more detailed the formation of municipal budgets by finding ways to create efficient and targeted budgets. For this reason, the problem of the autonomy of municipalities in the planning of their budgets was raised and formulated in this work. The application of the analysis of legislation and legal doctrine has allowed to establish that despite the validity of the concept of fiscal decentralization in Lithuania, the autonomy of municipalities in determining budget revenues and planning of expenditures is very limited. However, it is revealed that municipalities are sufficiently independent in regulating their budgeting procedures. As a result, the work also emphasizes that the procedures for drawing up budgets of different municipalities may be regulated by different local regulations. To reveal the topic of the Master's thesis and to achieve the purpose of the work was used descriptive, logical, systemic, historical and linguistic methods.
Allocation of State financial resources is one of the most important tasks of public administration. Rational allocation of these resources for the effective use of available resources essential to achieve national objectives and priorities to implement the areas of activity. Program budgeting system is one of the new public management elements to promote the modernization of the country budget financial management system. Program budgeting is more than budgeting method by the programming principle, it can be identified as performance management tool, in conjunction with strategic planning, budgeting by the results and the performance mesurament and evaluation. Program budgeting system is the budgeting system, which identifies the institutions mission, goals and objectives, integrates strategic planning, performance information and results in the budget process, it uses performance management information, accrual budgeting and acounting, allocates resourses in decentalized way and evaluates activities and performance. Denmark and Australia have introduced the program budgeting system for more than 15 years ago. While the countries are no longer calculate the first decade of operational efficiency in the system, but they are still faced with some, country-specific challenges and problems. The main problems and challenges faced by countries are mostly technical in nature, because there is a different management culture problems. South Korea obtaining assistance of the United States, began introducing the program budgeting system only in this decade, but its progress is quite rapid. South Korea is seeking to adapt all U.S. Government proposals, but taking into account their national circumstances and modifying some of its elements. The Lithuanian Government implements the program budgeting system as a result of budget reform. The program budgeting system establishes the strategic planning and budget principles, etc. The budget planned for three, shall be approved for one year, budget planning based on priorities and conclusion of the program, ensure budget transparency of the process and form a program evaluation system. After completion of theoretical analysis it is possible to conclude that generally there are obvious improvements in program budgeting system implementation over the last years in Lithuania. Attempts to improve the legal basis and to introduce the good practice of government finance management are evident. Besides, the experience of Lithuania in the process of introduction program budgeting system was certified as the one of the most successesful examples. Nevertheless the room for improvements is still quite large. Problems of program budget are related to the insufficient experience in preparing programs and the lack of control instruments.
Allocation of State financial resources is one of the most important tasks of public administration. Rational allocation of these resources for the effective use of available resources essential to achieve national objectives and priorities to implement the areas of activity. Program budgeting system is one of the new public management elements to promote the modernization of the country budget financial management system. Program budgeting is more than budgeting method by the programming principle, it can be identified as performance management tool, in conjunction with strategic planning, budgeting by the results and the performance mesurament and evaluation. Program budgeting system is the budgeting system, which identifies the institutions mission, goals and objectives, integrates strategic planning, performance information and results in the budget process, it uses performance management information, accrual budgeting and acounting, allocates resourses in decentalized way and evaluates activities and performance. Denmark and Australia have introduced the program budgeting system for more than 15 years ago. While the countries are no longer calculate the first decade of operational efficiency in the system, but they are still faced with some, country-specific challenges and problems. The main problems and challenges faced by countries are mostly technical in nature, because there is a different management culture problems. South Korea obtaining assistance of the United States, began introducing the program budgeting system only in this decade, but its progress is quite rapid. South Korea is seeking to adapt all U.S. Government proposals, but taking into account their national circumstances and modifying some of its elements. The Lithuanian Government implements the program budgeting system as a result of budget reform. The program budgeting system establishes the strategic planning and budget principles, etc. The budget planned for three, shall be approved for one year, budget planning based on priorities and conclusion of the program, ensure budget transparency of the process and form a program evaluation system. After completion of theoretical analysis it is possible to conclude that generally there are obvious improvements in program budgeting system implementation over the last years in Lithuania. Attempts to improve the legal basis and to introduce the good practice of government finance management are evident. Besides, the experience of Lithuania in the process of introduction program budgeting system was certified as the one of the most successesful examples. Nevertheless the room for improvements is still quite large. Problems of program budget are related to the insufficient experience in preparing programs and the lack of control instruments.
Most authors define the concept of a participatory budget as a way to decide together with the community on the use of public funds, where community members themselves propose ideas to the municipality and vote to select the ones they like best. The first participating budget in the world took place in Porto Alegre, Brazil. The main goals of the participatory budget are: to strengthen the local democratic culture, to involve the community in public affairs, to improve the quality of the living environment and public services. There are usually four stages in the process: idea development, project preparation, voting and implementation.
Strategic planning as the basis for budget planning, which is universally regarded as a good indicator of stability and reliability of the state's economy and as an instrument that helps the state's budget to adapt to the challenges of modern increasingly unpredictable environment, is analysed in the Master's thesis. The author of the thesis reveals the usefulness and significance of applying strategic planning in the state management by analysing scientific works of different authors, publications of international organizations, practice of the countries of the world and legal acts. The author assesses what economic and political events have determined the integration of the strategic planning system into the budgeting process in Lithuania. The synergistic effect of the interoperability of strategic planning and budgeting systems is revealed. The author also reveals how the interoperability of strategic planning and budgeting systems is supervised and how the results achieved by their performance as integrated systems are evaluated. However, despite the fact that interoperating strategic planning and budgeting systems create the result-oriented budget, the competent authorities identify the problem areas of these systems and provide recommendations on the possibilities to improve the interoperability of the systems. The results of the study prove that strategic planning and budget planning are strategically important tools in the state management. They ensure the targeted and efficient allocation of the state's financial resources in all its areas when implementing public functions. Appropriation managers measure the monitoring and evaluation of the performance result-oriented budget by the performance evaluation criteria and provide the information on their feasibility in the annual activity reports of institutions. The analysis of the legal acts that was done proved that Lithuania has invested much into the modernization of the result-oriented state's budgeting within the last two decades. The strategic planning process was integrated into the budgeting process in the year 2001; restructuring of the state's strategic planning and budgeting systems has been carried out since the year 2017. It aims at reviewing and streamlining the state's strategic planning and budgeting systems, at optimizing the number of strategic planning documents, at clarifying and securing the links between the planning documents, the goals set by them and their evaluation indicators. At the same time, a significantly closer link between the strategic planning system and the budgeting system, which will be focused on the medium-term (3-4 years) period rather than one-year period, is being pursued. The analysis of the experience of the countries of the world, which is presented in the Master's thesis, reveals that there is no single strategic planning and budgeting model that would suit for every state in the world.
Strategic planning as the basis for budget planning, which is universally regarded as a good indicator of stability and reliability of the state's economy and as an instrument that helps the state's budget to adapt to the challenges of modern increasingly unpredictable environment, is analysed in the Master's thesis. The author of the thesis reveals the usefulness and significance of applying strategic planning in the state management by analysing scientific works of different authors, publications of international organizations, practice of the countries of the world and legal acts. The author assesses what economic and political events have determined the integration of the strategic planning system into the budgeting process in Lithuania. The synergistic effect of the interoperability of strategic planning and budgeting systems is revealed. The author also reveals how the interoperability of strategic planning and budgeting systems is supervised and how the results achieved by their performance as integrated systems are evaluated. However, despite the fact that interoperating strategic planning and budgeting systems create the result-oriented budget, the competent authorities identify the problem areas of these systems and provide recommendations on the possibilities to improve the interoperability of the systems. The results of the study prove that strategic planning and budget planning are strategically important tools in the state management. They ensure the targeted and efficient allocation of the state's financial resources in all its areas when implementing public functions. Appropriation managers measure the monitoring and evaluation of the performance result-oriented budget by the performance evaluation criteria and provide the information on their feasibility in the annual activity reports of institutions. The analysis of the legal acts that was done proved that Lithuania has invested much into the modernization of the result-oriented state's budgeting within the last two decades. The strategic planning process was integrated into the budgeting process in the year 2001; restructuring of the state's strategic planning and budgeting systems has been carried out since the year 2017. It aims at reviewing and streamlining the state's strategic planning and budgeting systems, at optimizing the number of strategic planning documents, at clarifying and securing the links between the planning documents, the goals set by them and their evaluation indicators. At the same time, a significantly closer link between the strategic planning system and the budgeting system, which will be focused on the medium-term (3-4 years) period rather than one-year period, is being pursued. The analysis of the experience of the countries of the world, which is presented in the Master's thesis, reveals that there is no single strategic planning and budgeting model that would suit for every state in the world.
Strategic planning as the basis for budget planning, which is universally regarded as a good indicator of stability and reliability of the state's economy and as an instrument that helps the state's budget to adapt to the challenges of modern increasingly unpredictable environment, is analysed in the Master's thesis. The author of the thesis reveals the usefulness and significance of applying strategic planning in the state management by analysing scientific works of different authors, publications of international organizations, practice of the countries of the world and legal acts. The author assesses what economic and political events have determined the integration of the strategic planning system into the budgeting process in Lithuania. The synergistic effect of the interoperability of strategic planning and budgeting systems is revealed. The author also reveals how the interoperability of strategic planning and budgeting systems is supervised and how the results achieved by their performance as integrated systems are evaluated. However, despite the fact that interoperating strategic planning and budgeting systems create the result-oriented budget, the competent authorities identify the problem areas of these systems and provide recommendations on the possibilities to improve the interoperability of the systems. The results of the study prove that strategic planning and budget planning are strategically important tools in the state management. They ensure the targeted and efficient allocation of the state's financial resources in all its areas when implementing public functions. Appropriation managers measure the monitoring and evaluation of the performance result-oriented budget by the performance evaluation criteria and provide the information on their feasibility in the annual activity reports of institutions. The analysis of the legal acts that was done proved that Lithuania has invested much into the modernization of the result-oriented state's budgeting within the last two decades. The strategic planning process was integrated into the budgeting process in the year 2001; restructuring of the state's strategic planning and budgeting systems has been carried out since the year 2017. It aims at reviewing and streamlining the state's strategic planning and budgeting systems, at optimizing the number of strategic planning documents, at clarifying and securing the links between the planning documents, the goals set by them and their evaluation indicators. At the same time, a significantly closer link between the strategic planning system and the budgeting system, which will be focused on the medium-term (3-4 years) period rather than one-year period, is being pursued. The analysis of the experience of the countries of the world, which is presented in the Master's thesis, reveals that there is no single strategic planning and budgeting model that would suit for every state in the world.
Strategic planning as the basis for budget planning, which is universally regarded as a good indicator of stability and reliability of the state's economy and as an instrument that helps the state's budget to adapt to the challenges of modern increasingly unpredictable environment, is analysed in the Master's thesis. The author of the thesis reveals the usefulness and significance of applying strategic planning in the state management by analysing scientific works of different authors, publications of international organizations, practice of the countries of the world and legal acts. The author assesses what economic and political events have determined the integration of the strategic planning system into the budgeting process in Lithuania. The synergistic effect of the interoperability of strategic planning and budgeting systems is revealed. The author also reveals how the interoperability of strategic planning and budgeting systems is supervised and how the results achieved by their performance as integrated systems are evaluated. However, despite the fact that interoperating strategic planning and budgeting systems create the result-oriented budget, the competent authorities identify the problem areas of these systems and provide recommendations on the possibilities to improve the interoperability of the systems. The results of the study prove that strategic planning and budget planning are strategically important tools in the state management. They ensure the targeted and efficient allocation of the state's financial resources in all its areas when implementing public functions. Appropriation managers measure the monitoring and evaluation of the performance result-oriented budget by the performance evaluation criteria and provide the information on their feasibility in the annual activity reports of institutions. The analysis of the legal acts that was done proved that Lithuania has invested much into the modernization of the result-oriented state's budgeting within the last two decades. The strategic planning process was integrated into the budgeting process in the year 2001; restructuring of the state's strategic planning and budgeting systems has been carried out since the year 2017. It aims at reviewing and streamlining the state's strategic planning and budgeting systems, at optimizing the number of strategic planning documents, at clarifying and securing the links between the planning documents, the goals set by them and their evaluation indicators. At the same time, a significantly closer link between the strategic planning system and the budgeting system, which will be focused on the medium-term (3-4 years) period rather than one-year period, is being pursued. The analysis of the experience of the countries of the world, which is presented in the Master's thesis, reveals that there is no single strategic planning and budgeting model that would suit for every state in the world.
A budget of State (Government budget) in all countries is known as a financial plan of all planed incomes, expenses and revenues approved by the competent institution (in the Republic of Lithuania – by Seimas). It is a plan for saving, borrowing and spending by the State, that is drawned according to the requirements of the Law. The article deals with the problem of realization of principle of long-term (long-range) budget planning in the Republic of Lithuania. The legal definition and the essence of long-term budget planning, the reasons for changing to long-term budget planning is analyzed in the article. Particular attention is given to the question of the reform of budget planning in Lithuania that started in 1998 and signified transition from the model of short-term to the model of long-term budget planning. It' affirmed that the planning of budget of the State for particular period of time is established in Law on budgeting as one of the main principles of the whole budget process. According to the Law on budgeting and other legal acts the draft of the budget of the Republic of Lithuania shall be prepared for the period of three years basing on legislative acts of the Republic, information from state statistical agencies, socio-economic programmes and scientific-technological projections, etc.
A budget of State (Government budget) in all countries is known as a financial plan of all planed incomes, expenses and revenues approved by the competent institution (in the Republic of Lithuania – by Seimas). It is a plan for saving, borrowing and spending by the State, that is drawned according to the requirements of the Law. The article deals with the problem of realization of principle of long-term (long-range) budget planning in the Republic of Lithuania. The legal definition and the essence of long-term budget planning, the reasons for changing to long-term budget planning is analyzed in the article. Particular attention is given to the question of the reform of budget planning in Lithuania that started in 1998 and signified transition from the model of short-term to the model of long-term budget planning. It' affirmed that the planning of budget of the State for particular period of time is established in Law on budgeting as one of the main principles of the whole budget process. According to the Law on budgeting and other legal acts the draft of the budget of the Republic of Lithuania shall be prepared for the period of three years basing on legislative acts of the Republic, information from state statistical agencies, socio-economic programmes and scientific-technological projections, etc.
