The “least” of the municipalities can reach 250 million. euros: before the new year the situation can be complicated

As a result of the crisis caused by the coronavirus pandemic, around 1.2 billion could not be collected in this year’s state budget, according to the Ministry of Finance. EUR planned income.

Public debt is likely to exceed $ 22 billion. euros: we have never been so indebted.

According to FM forecasts, the municipal budgets will have significant losses.

He did not receive 44 million. Planned GPM

According to the Ministry of Finance, in January – May, 2.7 percent, or 22 million. EUR less than expected for the first five months of the 2020 budget at the end of 2019.

The main reason for the non-execution of municipal budgets is 44.2 million. Income from personal income tax (PIT) lower than expected.

As specified by the Ministry of Finance, the revenues from non-GPM revenues to municipal budgets were correspondingly higher than planned, therefore, part of the non-implementation of the GPM plan is covered by the excess of other revenues.

The main reason for the non-execution of municipal budgets is 44.2 million. lower than expected GPM revenue.

According to the updated forecasts of the Ministry of Finance, around 250 million LTL could not be collected in the municipal budgets in 2020. income of the euro

During January – May, the municipalities received 37.7 percent. of the projected annual income in the 2020 budget.

Among the municipalities that received more income than all the municipalities: Druskininkai (40.5% of the annual collection forecast in 5 months), Vilnius city (39.7% of the annual collection forecast in 5 months), Mažeikiai district ( 39.4% of annual forecast collection within 5 months), Akmenė district (39.4% of annual forecast collection within 5 months).

The following municipalities received less than the average income of all municipalities in the planned annual budget when compiling the 2020 budget: Joniškis district (33.7% of the annual forecast collection in 5 months), Elektrėnai (33.7% of the annual forecast collection in 5 months), Šilalė District (34.8% of the annual forecast collection within 5 months), Pakruojis and Neringa District (35% of the annual forecast collection within 5 months).

Borrow funds

More than a third of the municipalities, a total of 23, requested short-term loans from the Ministry of Finance.

More than a third of the municipalities, a total of 23, requested short-term loans from the Ministry of Finance.

Among them, the municipalities of Druskininkai, Elektrėnai, Pagėgiai, Kazlda Rūda, Rietavas.

Also – Vilnius, Kaunas and municipalities of the city of Šiauliai.

The municipalities of the Zarasai, Pakruojis, Utena, Plungė, Kelmė, Lazdijai, Švenčionys, Kaunas, Akmenė, Varėna, Biržai, Trakai, Ukmergė, Mažeikiai and Joniškis districts applied for short-term loans from the district municipalities.

According to representatives of the Ministry of Finance, the amount of signed loans and municipal loan applications received this week amounts to almost 105 million. euros

Disbursed – almost 29 million. euros

Among the largest municipalities that applied for short-term loans, the municipalities of the largest cities – Vilnius, Kaunas and Šiauliai – applied for them.

Among the largest municipalities that applied for short-term loans, the municipalities of the largest cities – Vilnius, Kaunas and Šiauliai – applied for them.

The smallest: municipalities of the Pakruojis, Varėna and Pagėgiai district.

“The municipalities analyze and evaluate the need to borrow, taking into account the amount of their planned income, which is not collected due to the situation of COVID-19. The Ministry learns of the need to borrow from a particular municipality only by requesting a short-term loan to finance the lack of working capital, “explained the representatives of the Ministry of Finance.

Decide as needed

The objective of the state treasury loans, according to representatives of the Ministry of Finance, is to help municipalities manage the shortage of working capital and implement planned expenses.

Therefore, when evaluating the amount of a short-term loan requested by the municipality, the projected and unearned income of the municipality is taken into account.

“Short-term loans are granted to the municipalities according to their needs and, if they request it, they are not allowed to lend specific amounts for each municipality. Each municipality’s application is evaluated separately according to the loan utilization objectives specified in the loan application, the expected loss of revenue from the GPM municipal budget, and the municipality’s financial capacity to repay the loan, “noted the Treasury.

Short-term loans are made to municipalities as needed and upon request.

You must compensate for the losses.

V. Mitrofanov, the mayor of Akmenė district, the LSA vice president, emphasized that the majority of the budget revenues of independent municipalities consist of GPM.

The reasons for its non-collection are the coronavirus pandemic, the increase in the unemployment rate, the fact that some workers were sent to downtime, the decrease in wages.

V. Mitrofanov explained that the municipalities support the reduction of the amount of tax free income (NPD).

President Gitan Nauseda has proposed to increase the NPD from 350 to 400 euros. This was also supported by the Government.

However, according to the LSA vice president, the state is not behaving correctly and honestly in this regard.

He explained that with the reduction of the NPD, the personal income tax, the redistribution of money is carried out through other fiscal measures.

Suppose the value added tax (VAT).

“So I buy more, I pay more VAT. Then there is simply a transfer of money from one pocket to another. But the municipalities suffer. This is what we later talk about why that part is not reimbursed. And now, not so much, it has It was difficult to win that at least those losses are compensated by 70 percent for us. Although, I think, the municipalities should receive a compensation of 100 percent of the lost income of the decisions made by the state “, V. Mitrofanov is convinced .

So there is simply a transfer of money from one pocket to another. But the municipalities suffer.

Borrowed 2 million. euros

V. Mitrofanov explained that the municipality of the Akmen distrito district did not experience significant losses in the collection of the budget.

During the first five months of this year, around 200 thousand. expected revenue of EUR.

According to V. Mitrofanov, the municipality of Akmenė district submitted an application to the Ministry of Finance and borrowed 2 million. to compensate for possible losses of working capital.

“If we see that at the end of the year we would be short of paying salaries to teachers, social workers, so we don’t have to put out the fire.” This is how we form a pillow for ourselves. Whether or not this happens will be another matter. Of course, then part of the debt limits arises. Because this loan is short term. I couldn’t even call it a loan. When you pick up that year, say 2 million, and you will have to pay in the same year. In this case, I call it working capital, ”said the mayor of Akmenė district.

This is how we form a pillow for ourselves.

V. Mitrofanov said that the Akmenė district budget this year reaches about 27 million. euros

The income collected by the municipality itself amounts to about 17-18 million euros of this amount.

If the economy were to shrink by 10 percent, according to the Akmen Ak district mayor, the planned budget losses would be almost the same.

According to V. Mitrofanov, the situation before the New Year can be difficult.

It is no secret that some municipalities are now forming payroll funds for 11 months, hoping to receive excess funds to cover last month’s expenses.

“However, I always see that you have to distinguish two things to borrow: one, to eat, I never agree with that and, as I say, we need to live within our means; The other thing is when the projects are, let’s say, some special and pay off.

While the public sector must be very careful with the recovery of investment in the provision of public services, we are not a private or non-commercial company to calculate, for example, the recovery of profitability and some other generation of income, profitability. Because, however, we need to look more through social compensation, through other things.

Let’s say that now one of our ideas and projects is to build a solar power plant park, where we would almost completely offset the electricity costs of our budgetary institutions, ”said V. Mitrofanov.

Two things must be distinguished to borrow: one is to eat: I never agree with that and, as I say, we need to live within our means; The other thing is when the projects are, let’s say, some special and pay off.

In his opinion, compliance with the Fiscal Discipline Law is placed on the shoulders of self-government.

“As much as the state borrows, as much as the reserve is used. And, I think that today its enforcement is placed on the shoulders of the municipalities,” said V. Mitrofanov.

Waiting for stabilization

V. Mitrofanov believes that the situation will stabilize, the crisis is not the same as in 2009.

He recalled that the municipality of Akmenė district had lost about 30 percent of its income, about 16 million. LTL, compared to 2008.

“It just came to our attention then. People left on unpaid leave and so on. I think the pandemic economy may have slowed down, let’s say, but it’s not a banking crisis. And after opening the borders and seeing the called the European Union DNA package, where something is even unreal to me, that by 2022 huge sums of money will be allocated to Lithuania, we will absorb them very soon, “he said.

It was a catastrophic decline here. People left on unpaid leave and so on.

Another important thing, according to V. Mitrofanov, is to reduce bureaucratic obstacles to project implementation.