Republic of Lithuania; Selected Issues

Preprint OPEN
International Monetary Fund (2006)
  • Subject: Lithuania;tax rate, tax system, taxes, tax base, property tax | Lithuania;health, health care, hospitals, workers, public health | Euro Area;Selected issues;Public finance;Fiscal sustainability;Inflation;Lithuania;public finances, tax effort, public debt, taxation, tax administration | Credit expansion;Crisis prevention;Bank supervision;Banking systems;Financial systems;Financial sector;Selected issues;Pensions;Income taxes;Lithuania;Labor markets;Investment;Tax credits;Tax burdens;Tax reforms;securities, capital adequacy, capital adequacy ratio, banking system, subsidiaries | Economic conditions;Selected issues;Lithuania;inflation, currency boards, macroeconomic performance, inflation dynamics, relative price | Selected issues;Prices;Lithuania;Inflation;international monetary fund, labor market, low inflation | Lithuania;taxation, fiscal adjustment, tax rates, tax system, fiscal consolidation | Current account;Gross domestic product;Real effective exchange rates;Production;Selected issues;current account balance, current account deficit, exchange rate, real exchange

This Selected Issues paper reviews public expenditure in Lithuania with a view to identify areas for which deeper reforms may be warranted to improve spending efficiency and contain future spending pressures. The paper benchmarks spending levels and spending composition in Lithuania against those in other European countries. The 31 European countries covered in the benchmarking exercise include the EU-28 plus Iceland, Norway, and Switzerland. Reflecting the tendency for public spending to increase with income, Lithuania’s spending as a share of GDP is compared with the European Union average spending controlling for GDP per capita. The paper also tries to assess spending relative to outcomes to get a sense of spending efficiency.
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