This report aims to provide technicalassistance to the Government of Lithuania in preparation forthe June 2009 budget amendment and beyond. This PublicExpenditure Review (PER) includes a number ofrecommendations on short run fiscal consolidation (mainlythrough spending cuts) as well as efficiency-enhancingreforms that could eventually generate fiscal savings andreduce the fiscal deficit over the medium term. In thecontext of increased social needs arising from the crisis,this report also tries to identify the changes needed insocial assistance benefits to better protect the poor andvulnerable during the crisis and beyond in a cost-efficientway. In agreement with the Government, social sectors(social protection, health, and education) have been chosenas the focus of analysis, given the room for short andmedium term adjustments and the large implications of thoseon the overall budget. The PER also analyses the public wagebill and public administration. Finally, macroeconomic risksas well as the overall fiscal scenario and risks (includingan exploration of revenue measures that could bring fiscalsavings over 2009-10) are also analyzed to provide thecontext for the subsequent sectoral sections.
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