The Project “Municipal debt restructuring: design a tool for the evaluation of the long run sustainability of LG’s financial structure” carried out by SOSE in collaboration with the Lithuanian Government continues. The project, started in July 2018, is based on the Italian experience of Standard expenditure needs, recognized as an excellence model in Europe. The Lithuanian representatives, that have taken part to the project, will be in SOSE from 18th to 20th December to complete a new step of the project.
The meeting will include, among its objectives, the debate and the discussion on the progress made in the implementation of the project and the planning of the steps to undertake in order to analyse the sustainability of the financial structure of municipalities with particular attention to the evaluation of fiscal capacity components. One of the main activities of the project is the determination of the fiscal gap between standard expenditure and fiscal capacity of local governments. The first phase of the project focused on the analysis of data useful to calculate standard expenditure needs in the period 2013-2017 for all 60 Lithuanian municipalities.
The results and the analysis tools elaborated in collaboration with SOSE, will support the Lithuanian Government in the implementation of the reforms aiming to increase the efficiency in the provision of local public services, to reach sustainability of local governments’ financial structure in the long run and finally to improve the investment capacity of local governments.