{
  "title": "Toward A Sustainable and Inclusive Consolidation in Lithuania: Past Experience and What is Needed Going Forward",
  "publication": "IMF Working Papers, July 3, 2013",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/toward-a-sustainable-and-inclusive-consolidation-in-lithuania-past-experience-and-what-is-40736",
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  "summary": "This paper reviews Lithuania’s fiscal consolidation since 2009, assesses the contribution of revenue and expenditure to the consolidation, evaluates the quality of measures, and draws lessons for the future.",
  "sections": [
    {
      "heading": "Review of fiscal consolidation since 2009",
      "content": "- Reviews Lithuania’s fiscal consolidation since 2009.\n- Assesses the contribution of revenue and expenditure to the consolidation.\n- Evaluates the composition and quality of measures implemented over the consolidation period."
    },
    {
      "heading": "Main findings on composition and quality of measures",
      "content": "- Despite having the lowest revenue-to-GDP ratio in the EU, Lithuania’s fiscal adjustment has so far relied mainly on expenditure measures.\n- The quality of measures deteriorated over time.\n- There is ample scope to implement high quality revenue measures to complete the fiscal adjustment in the medium term in a sustainable and inclusive manner."
    },
    {
      "heading": "Tax system assessment",
      "content": "- Lithuania’s tax system, in comparison with other EU countries and regional peers, is skewed toward labor and consumption taxes.\n- The tax system plays a more limited role in income redistribution, especially in the upper income brackets."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Implement high quality revenue measures to complement past expenditure-based consolidation.\n- Design revenue measures that enhance sustainability and inclusiveness of fiscal adjustment.\n- Consider reforms to tax structure to reduce skew toward labor and consumption taxes and strengthen the role of taxation in income redistribution, particularly for upper income brackets.\n- Strengthen revenue administration and tax effort to improve revenue generation capacity.\n\n---\n\n Content in this bundle\n\n- Wp13157\n  - Wp13157 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp13157 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/toward-a-sustainable-and-inclusive-consolidation-in-lithuania-past-experience-and-what-is-40736"
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    "Authors: Nan Geng",
    "Published: July 3, 2013",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475568851.001",
    "Reviews Lithuania’s fiscal consolidation since 2009.",
    "Assesses the contribution of revenue and expenditure to the consolidation.",
    "Evaluates the composition and quality of measures implemented over the consolidation period.",
    "Despite having the lowest revenue-to-GDP ratio in the EU, Lithuania’s fiscal adjustment has so far relied mainly on expenditure measures.",
    "The quality of measures deteriorated over time.",
    "There is ample scope to implement high quality revenue measures to complete the fiscal adjustment in the medium term in a sustainable and inclusive manner.",
    "Lithuania’s tax system, in comparison with other EU countries and regional peers, is skewed toward labor and consumption taxes.",
    "The tax system plays a more limited role in income redistribution, especially in the upper income brackets.",
    "Implement high quality revenue measures to complement past expenditure-based consolidation.",
    "Design revenue measures that enhance sustainability and inclusiveness of fiscal adjustment.",
    "Consider reforms to tax structure to reduce skew toward labor and consumption taxes and strengthen the role of taxation in income redistribution, particularly for upper income brackets.",
    "Strengthen revenue administration and tax effort to improve revenue generation capacity.",
    "**Wp13157**"
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