The State budget of the Republic of Lithuania is a centralized fund for financial resources. In other words, it is a means for the collection and redistribution of a certain share of national income. The financial resources collected in the State budget are used for financing of general public needs. The State budget is also the means through which the financial resources are being redistributed in order to finance municipal needs under the procedures prescribed in the legislation. According to the classification of revenue and expenditure of the State budget and municipal budgets of the Republic of Lithuania, revenue consists of tax revenue, nontax revenue and income from capital.
Expenditure is classified by function and by economic classification.
Currently, the classification of revenue and expenditure of extra-budgetary funds does not correspond with that for State and municipal budgets. Estimates on revenue and expenditure for each of extra-budgetary funds are approved by resolutions of the Government. Certain revenue and expenditure indicators are included in the basic items according to slightly different methodological procedures. The Ministry of Finance follows the new classification in the collection and calculation of all financial indicators since the beginning of 1999. The new standard tables are used to disseminate information on the Central Government operations, Central Government debt and the consolidated General Government budget.