Better Regulation in Lithuania

In Lithuania, the successful implementation of better regulation initiatives started upon approval of the Better Regulation Programme (hereinafter – the Programme) by Resolution No 185 of the Government of the Republic of Lithuania of 13 February 2008 and having tasked the Ministry of Economy with the coordination of implementation of the Programme.

Better regulation is a set of systematically applied measures aimed at ensuring the effectiveness of the government policy, continuously improving the drafting, adoption and implementation of legislative acts, upgrading the quality of legal regulation, and improving its efficiency and consistency.

The Ministry of the Economy and Innovation is open for business support. Business stakeholders must state clearly where they want to go and then the official authorities will provide the best legal tools to achieve this.

The Ministry of the Economy and Innovation coordinates major developments, related to administrative burden measurement and reduction for business, continues its work in prevention of new administrative burdens on business, calculate administrative burden reduction target of every governmental institution and overall countrywide.

Administrative burden reduction is one of the better regulation key tools for improving business environment:

  • Calculating new administrative burden which originates from new draft legislation (Public authorities are required to calculate new administrative burden and introduce reports to The Ministry of the Economy and Innovation )

  • Stabilization of the general level of administrative burden (we have a form of one in, one pout stock-flow linkage rule – zero-growth policy regarding administrative burden)

  • Coordination of the process (The Ministry of the Economy and Innovation coordinates key tools for reducing administrative burden)

Our priorities and challenges:

  • Harmonized cooperation with the public authorities and looking forward for cultural changes in national lawmaking

  • Involving stakeholders in the process of evaluation and reduction of burden

  • Improving betel regulation skills constantly

  • Elevating evaluation to the next level – evaluation of the compliance costs for business and overall regulatory burden evaluation

Main achievements

2018

After changes that were made in 2018, the administrative burden will decreas by 103,9 million euro.

On 10 October, 2018 the Government approved the Administrative burden reduction 2018–2019 directions (plan of measures). Previously, the administrative burden reduction plans included many small measures that did not materially affect the reduction of administrative burdens (were too small, became irrelevant, were not implemented, etc.). Now in the directions (plan of measures) there are three directions included – it is suggested to the responsible implementers to carry out their analysis as much as possible and to prepare legislative changes that would allow to abandon excessive, overlapping, irrelevant information obligations. Three directions:

  1. reduction of the administrative burden caused by the legal regulation of energy consumption, production and supply;

  2. reduction of the administrative burden caused by the legal regulation of personal health care institutions and public health care institutions;

  3. reduction of the administrative burden caused by the legal regulation of agricultural entities.

2017

After changes that were made in 2017, the administrative burden decreased by 4,6 million euro.

2016

On 10 February, 2016 the Government approved the Plan of Administrative Burden Reduction Measures for 2016–2017 covering 60 administrative burden reduction measures for business and natural persons proposed by representatives of business and public authorities.

2015

After changes that were made in 2015, the administrative burden decreased by 2,226 million euro.

The Organisation for Economic Co-operation and Development (OECD) carried out an evaluation of regulatory reforms in Lithuania and made recommendations. The study is published:

https://www.oecd-ilibrary.org/governance/regulatory-policy-in-lithuania_9789264239340-en

2014

The amendment to the Methodology for Determining the Administrative Burden of Business of 22 July 2014 established a new goal of the reduction of administrative burden applicable to each authority individually: the level of administrative burden created by legal regulation initiated in the area of competence of the authority must remain unchanged or reduced over a period of a calendar year.

Public authorities were obligated to calculate the change of administrative burden in monetary terms, and the Ministry of Economy – to determine the change in the level of administrative burden created by legal regulation initiated in the area of competence of each authority over a calendar year and to submit a report on the change in the administrative burden estimated by all authorities over the past year and on the implemented burden reduction measures.

In implementing the Law on Reduction of Administrative Burden, the Commission for the Supervision of Better Regulation has been formed and started its activities. The Commission has been entrusted the performance of tasks related to the assessment of administrative burden and application of administrative burden reduction measures in public and municipal authorities and institutions.

On 2 July 2014, the Government approved the Plan of Administrative Burden Reduction Measures for 2014–2015 covering more than 90 administrative burden reduction measures for business and natural persons proposed by representatives of business and public authorities.

2013

The Law on Reduction of Administrative Burden, providing for the new larger-scale tasks of administrative burden assessment and reduction, came into force:

  • approval of a longer-term plan of administrative burden reduction measures of two years by resolution of the Government and its submission to the Seimas;
  • assessment and reduction of administrative burden is mandatory for both public and municipal authorities;
  • in order to involve representatives of social and economic partners in the assessment and reduction of administrative burden, it was envisaged to form an ad hoc Commission for the Supervision of Better Regulation.

In 2012, the methodology for the determination of administrative burdens on business was updated, and the mechanism to prevent the formation of new administrative burdens was designed. It was established that administrative burdens of all legal acts providing new or amending the existing information obligations for business must be assessed, and these draft legal acts must be submitted to the Ministry of Economy for estimation. The administrative burden reduction works were further continued. The Urgent Action Plan to Reduce Administrative Burdens in the Priority Areas was approved by the Government.

In 2011, the following main works were carried out:

  • Administrative burdens were assessed in monetary terms in seven priority areas determined by the Government; administrative burdens on business were accounted for in the electronic database (calculator). The internationally recognised formula was used not only to estimate, in monetary terms, costs incurred by economic entities in order to comply with legal acts but also to assess the burden reduction since 1 January 2009. The most significant achievements related to administrative burden reduction were achieved in the priority areas of territorial planning and construction, statistics and transport.
  • Civil servants were trained to assess administrative burdens in monetary terms, to use the administrative burden database (calculator), to supplement it with new data and carry out a data analysis;
  • On the initiative of the Ministry of Economy, the proposals for reduction of the national administrative burden on business in the priority areas were drafted; upon implementation of these proposals to the fullest extent possible, the national administrative burden on business would be reduced by more than 30%;
  • Over 90 urgent measures to reduce administrative burdens in the priority areas were approved by decision of the Government; the majority of them have been implemented.

In 2010, the Ministry of the Interior of the Republic of Lithuania, the European Social Fund Agency and the Ministry of Economy of the Republic of Lithuania concluded the financing and administration agreement for the project “Assessment of Administrative Burdens, Improvement of the Quality and Efficiency of Legal Regulation and Strengthening of Administrative Capacities in the Context of Better Regulation”. The works to assess administrative burdens in monetary terms and to reduce administrative burdens have started.

In 2010, when reviewing the applicable legal acts, state institutions prepared more than 150 draft legal acts eliminating administrative burdens on business.

In 2009, in response to the obligation imposed by the European Council on EU Member States to set a national quantitative target to reduce administrative burdens on business, the Government of the Republic of Lithuania by its resolution entrenched the target for reducing the national administrative burden on business in the priority areas – 30% by the end of 2011 and identified the following priority areas for reducing administrative burdens on business:

  • tax administration;
  • employment relations;
  • statistics;
  • environmental protection;
  • transport;
  • real estate transactions;
  • territorial planning and construction.

In 2009, The Commission for Improvement of the Business Environment (the Sunrise Commission) and its working groups formed mainly of representatives of business entities commenced their activities. The purpose of the Commission and its working groups is to consider issues related to the improvement of the business environment and submit proposals on how legal regulation could be improved and administrative burdens could be reduced in those areas that cause the most problems for business. A special Bureaucratic Burden For Business Reduction Working Group was formed to address any issues related to administrative burdens. In 2009, this working group addressed 108 issues related to business environment improvement, burden reduction and regulation streamlining and submitted 80 proposals regarding them.

In 2009, The research study “The Analysis of the Quality of the Impact of Decisions, Methods and Efficiency of Consultations with the Public and Interest Groups” commissioned by the Ministry of Economy was carried out.

In 2008, the first stage of the assessment of administrative burden – mapping of information obligations in national legal acts, was completed.

Last updated: 05-04-2019