Vilnius municipality teeters on bankruptcy

  • 2013-10-31
  • From wire reports, VILNIUS

A proposal has been submitted to reduce the share of personal income tax (GPM) planned to allocate to Vilnius City Municipality, from 48 to 45 percent, reports ELTA.

Plans for the draft law on the methodology of determination of municipal budgetary revenues at the Seimas was registered by Andrius Mazuronis, a member of political group Order and Justice Party.

The draft plans increasing a share of GPM from 42 to 48 percent and thus saving Vilnius City Municipality from impending bankruptcy.

An official said how Vilnius City municipality's debt, currently around 1 billion litas (29 million euros), is a result of utopian, expensive and failed projects carried out by the municipality.

Andrius Mazuronis said: “I believe that Vilnius City Municipality should pay more attention to priorities, to better defend interests of the residents and meet their needs, stop launching investment projects of millionth value that bring no benefits. Therefore, I suggest increasing the share of personal income tax allocated to Vilnius from 42 to 45 percent. (..) If the municipality uses funds effectively, then a possibility for increasing the GPM share to 48 percent could be considered,”