Plan on the Integration
Introduction
The plans for integration measures in individual sectors have been prepared by responsible institutions of the Republic of Lithuania. These plans are based on the priorities indicated and recommended in the Accession Partnership, the Regular Report from the European Commission, the Action Programme of the Government of the Republic of Lithuania for 2000-2004, as well as the obligations undertaken in the Lithuanian negotiation positions. The integration measures, with the focus on their financial needs and sources, have been grouped according to the annual plans of their implementation. Financial needs are relatively aggregated according to three major groups of measures: document development, institution building and investments to infrastructure. The financial needs for document development cover fees to additionally hired experts, expenditures for seminars which are organised to discuss legal acts, publishing costs, fees of participation in various Community programmes, etc. Institution building measures include the establishment of new institutions or units, strengthening of existing institutions or units (premises, strengthening of material facilities, development of information systems, registers, improvement of qualifications, etc.). The financial needs for investments to infrastructure cover only infrastructure projects in the sectors of agriculture, fishery, environment, transport and energy. The financial needs for the year 2001 are indicated on the basis of the approved State Budget for 2001. The financial needs indicated for 2002-2003 and the following years are preliminary and will be adjusted drafting the State Budget, planning assistance received from PHARE and other sources and reallocating functions of institutions.
Methods for LEUAP-NPAA Financing
Financing for the LEUAP-NPAA implementation is ensured through budgetary allocations for 2001-2004 from the State Budget of Lithuania, also by making use of funds provided through multilateral and bilateral international technical assistance, as well as support from international financial institutions and other local sources. The State Budget for 2001 was approved by the Law on the Approval of Financial Indicators of the State Budget and Municipal Budgets for 2001, adopted on 19 December 2000. Budgetary allocations are divided into current expenditures (i.e. expenses related to the functioning of state and municipal institutions and establishments and the implementation of their programmes without increasing the 457 value of their fixed assets) and capital expenditures (i.e. expenses allotted for the creation, acquisition of fixed tangible and intangible assets and for the formation of State reserves). Since 1999 Lithuania has applied a method of programme budget formation and performance for three years. The implementation of the LEUAP-NPAA is financed by funding specific LEUAP-NPAA measures through budgetary allocations to the ministries or other institutions implementing these measures. Upon approval of the State Budget, the recipients of those allocations (ministries, state institutions) will receive financing directly through the Ministry of Finance. The total funds necessary for the implementation of the LEUAP-NPAA in 2001 constitute LTL 1153.876 million. Sources of financing have been identified for LTL 1088.868 million, or 94.37 per cent of the required funds. LTL 358.963 million (31.11 per cent of the total funds) of the identified sources of financing is comprised of State budgetary allocations, amounting to 4.84 per cent of the total State budgetary allocations, of which current expenditures amount to LTL 257.154 million and capital expenditures amount to LTL 98.909 million. This amount covers the establishment of new positions, the strengthening of existing institutions and the establishment of new institutions, as well as the implementation of investment projects. This amount does not include salaries to public servants, working in different areas related to EU integration (except for salaries to positions, which are being newly established). In 2001, over LTL 92 million will be allotted to co-financing. Approximately 26 per cent of funds to finance LEUAP-NPAA measures in 2001 will be allocated from local sources (Privatisation Fund, State Insurance Supervision Service, Environmental Investment Fund, etc.). LTL 431.528 million (37.4 per cent of the total funds) to finance LEUAP-NPAA measures in 2001 will be received from EU structural funds (PHARE, SAPARD and ISPA), bilateral assistance and various international financial institutions (World Bank, European Investment Bank, etc.). The major part of PHARE funds will be allocated in the areas of co-operation in justice and home affairs (LTL 21.28 million), transport (LTL 16.1 million), customs union (LTL 14 million) and agriculture (LTL 11.682 million). SAPARD funds (LTL 109.750 million) will be allocated for the implementation of measures in the agricultural and fishery sectors. ISPA funds will be allotted to finance transport and environmental investment projects, by allocating LTL 70.7 million and LTL 19.87 million, respectively. Data on the sources and needs of financing in the year 2001 are provided in Diagrams 1 and 2. Detailed data on needs and sources to finance LEUAP-NPAA measures are presented in Section 4.2.