Information of the chapter will be supplemented

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The chapter presents statistical information on the general government. In 2014, the requirements set in Regulation (EU) No 549/2013 of the European Parliament and of the Council on the European system of national and regional accounts in the European Union (ESA 2010) were implemented in all EU member states, and a revision of the time series of general government finance and national accounts aggregates was carried out.

In accordance with the ESA 2010, all country’s eco­nomic entities are grouped into 5 in­stitutional sec­­tors, one of which is the general government (S.13) with the main function of distributing na­tional income and wealth for the needs of so­ciety.

General government (S.13) covers:

– central government sub‑sector (S.1311), which includes institutions and other entities funded and controlled by the State budget;

­– local government sub‑sector (S.1313), which includes institutions and other entities funded and controlled by municipal budgets;

– social security fund sub‑sector (S.1314), which includes the State Social Insurance Fund, the Com­pulsory Health Insurance Fund, and other entities of this sub-sector.

The important requirement of the ESA is to record flows on an accrual ba­sis, that is, when the economic value is created, trans­formed or extinguished, or when claims and ob­li­ga­tions arise, are trans­for­­med or cancelled.

Main aggregates of the general government

General government (S.13) revenue:

– market output (P.11); output produced for own final use (P.12); payments for other non‑mar­ket products (P.131). Market output (P.11) con­sists of the output of the general government that is dis­posed of on the mar­ket or intended to be dis­posed of on the mar­ket. Prod­ucts are sold at eco­­nomi­cally signifi­cant prices. The output produced for own final use (P.12) consists of goods and ser­vices that are re­tai­ned either for the gen­eral government final con­sump­tion by the same institu­tional unit or for gross fixed capital formation by the same institutional unit. Pay­ments for other non-market products of the gen­eral gov­ern­ment (P.131) consist of various fees and charges paid for services at economi­cally insignifi­cant prices;

– taxes on production and imports, receivable (D.2), consist of com­pul­sory, unrequited pay­ments in cash or in kind, which are levied by the general government, in res­pect of the production and import of goods and ser­vices, work of em­ployees, the ownership or use of land, buil­dings or other assets used in production. These ta­xes are paid regardless of whether profit is made or not;

– other subsidies on production, receivable (D.39), cover subsidies received by producers with the ob­jective of influencing their levels of pro­duction, their prices or the remuneration of the factors of pro­duc­tion. Subsidies on products are excluded;

– property income, receivable (D.4), covers the income of the general government received in return for provi­ding funds to other institutional sectors or entities within the sector (interest, dividends, rein­vested profit, etc.);

– current taxes on income, wealth, etc., receivable (D. 5), refer to taxes the general government lev­ies on income and wealth of individuals, house­holds or enterprises;

– social contributions (D.6) are actual or imputed pay­ments to social insurance schemes to make pro­vision for social insurance benefits to be paid. Social contri­bu­tions consist of all contributions of employ­ers, em­ploy­ees, the self-employed and the unem­ployed to social insurance schemes;

– other current transfers, receivable (D.7), are cur­rent transfers between all resident institutional units and residents and non-residents. The important ele­ment of this income group is current transfers within the ge­neral government (D.73). These con­sist of current transfers between different govern­ment units or dif­ferent sub‑sectors of the general govern­ment.

This heading also includes current transfers in cash or in kind between the governments of dif­ferent countries, as well as EU support and sup­port of other international organisations (D.74);

– capital transfers, receivable (D.9), are defined as transactions in which other institutional units provide assets to the general government without any coun­ter­part being received in return. Capital trans­fers are subdivided into capital taxes, invest­ment grants, and other capital transfers.

General government (S.13) expenditure:

– compensation of employees (D.1) covers total re­mu­neration in cash or in kind paid to employees for their work and employers’ social contributions to social security funds;

– intermediate consumption (P.2) refers to the value of all goods or services consumed as inputs by a process of production, excluding fixed as­sets. The goods and services may be either transformed or used up in the production proc­ess;

– other taxes on production, payable (D.29), refer to taxes the general government, being an institu­tional sector, pays on the ownership or use of land, buildings, equipment, machinery, etc.;

– subsidies (D.3) are current unrequited payments that government units, including non-resident go­vern­ment units, make to producers with the objec­tive of influ­encing their levels of production, their prices or remu­neration of the factors of produc­tion;

– property income, payable (D.4), is interest paid by the general government to other institutional sectors or interest paid to institutions within the general govern­ment for the funds provided or lent;

– social benefits other than social transfers in kind (D.62) are current transfers re­ceived by house­holds intended to provide for the needs that arise from cer­tain events or circum­stances, for example: old age, sickness, unemployment, etc.;

– social benefits in kind, payable (D.632), are transfers in kind in­tended to relieve households from the financial burden of social risks or needs. They are different types of com­pensations in kind paid by the gen­eral govern­ment to house­holds: compensation for medi­ca­ments, sanato­rium treatment, heating, hot water, etc.;

– other current transfers, payable (D.7), are cur­rent transfers between all resident institutional units and residents and non-residents. The important element of this expenditure group is current transfers within the general government (D.73). They consist of cur­rent transfers between different government units or dif­ferent sub-sectors of the general government.

This heading also includes current transfers paid by Lithuania to international organisations (D.74);

– capital transfers, payable (D.9), are defined as tran­s­actions in which the general government pro­vides assets to another institutional units without any coun­terpart being received in return. Trans­fers may be made in cash or in kind;

– gross fixed capital formation (P.51G) is measured by the total value of producer’s acquisitions, less disposals of fixed assets during the accounting pe­riod, plus certain additions to the value of non-produced assets realised by the productive activ­ity of institu­tional units;

– acquisitions of non-financial non-produced as­sets, less disposals (NP), consist of land, other tangible assets that may be used in the production of goods and services, and intangible assets. This indicator refers to the dif­ference between the value of the assets acquired and disposed during the reference period.

Debt refers to the total gross debt at nominal value of the general government and entities as­cribed to its subsectors that have legal rights to assume loan li­abilities, assumed but not yet imple­mented according to loan agreements, leasing (financial rent) agree­ments, and other debt docu­ments outstanding at the end of the year. The debt is constituted by the liabili­ties of the general govern­ment in the following cate­gories: currency and de­posits (AF.2), debt securities (AF.3) and loans (AF.4).

The debt is calculated as a total of domes­tic and foreign debt. The debt in foreign currency is recal­cu­lated from foreign currency in which the obliga­tions have been assumed to national cur­rency on the basis of the official exchange rate of the litas to the foreign currency as of the last day of the repor­ting period, pub­lished by the Bank of Lithuania.

General government deficit (surplus) re­fers to net lending or net borrowing (B.9) of the general go­vern­­ment (S.13). This is a measure indicating the net result of the uses of the general government resources.

General government debt. The calculation of debt is regulated by Council Regulation (EC) No 3605/93 (last amendments in Commission Regulation (EU) No 220/2014) and the amended Law on State Debt of the Republic of Lithuania complying with the regulation above.

In 2018, the total consolidated income of the ge­ne­ral government amounted to EUR 15.7 billion and, compared to 2017, increased by 10.3 per cent. Over the year, tax revenue in­creased by 8.5 per cent and amounted to EUR 7.8 billion in 2018. The total amount of the individual income tax collected increased by 13.1, profit tax collected – 9.5, excise duties collected – 7.8, value added tax collected – 6.4 per cent. Over the year, net social secu­rity con­tributions in­cre­a­­sed by 11.2 per cent and amounted to EUR 5.9 billion in 2018.

In 2018, compared to 2017, consolidated expenditure of the gen­eral govern­ment increased by 9.9 per cent and amoun­ted to EUR 15.4 billion. General go­vern­ment final consumption ex­penditure increased by 8.2 per cent (of which on indi­vidual con­sumption – by 9, on col­lective consumption – 7.2 per cent), general govern­ment expen­diture on gross fixed ca­pi­tal for­mation increased by 7.8 per cent. In 2018, social bene­fits increased by 15.2 per cent.

Faster increase in income than in expenditure has led to increase in the general government surplus from EUR 192 million (0.5 per cent of GDP) in 2017 to EUR 270.8 million (0.6 per cent of GDP) in 2018. The general government debt (at the end of the period) decreased from EUR 16.6 billion in 2017 to EUR 15.4 billion in 2018; the share thereof, compared to GDP, decreased from 39.3 to 34.1 per cent respectively. This indicator complies with the Maastricht Treaty criterion, according to which the debt may not exceed 60 per cent of the country’s GDP. Data on debt and deficit were submitted to the European Commission at the end of September 2019.

General government deficit and debt
Consolidated data

The latest and detailed data are available in the Database of Indicators

General government deficit and debt as a percentage of gross domestic product
Consolidated data, per cent

The latest and detailed data are available in the Database of Indicators

Consolidated gross debt of the general government and its sub-sectors
At nominal value, end of the period, EUR million

The latest and detailed data are available in the Database of Indicators

More:

Taxes and social contributions

For further terms, see the Dictionary of Statistical Terms.