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Key Provisions of Election Programmes
By LFMI
"The Free Market", 2000 No. 5

A. Brazauskas Social Democratic coalition Centre Union Homeland Union (LC) Liberal Union New Union (Social Liberals) Peasants Party
Privatisation and investments
1. halt harmful and incompetent privatisation,
2. retain state ownership of social infrastructure,
3. retain state management control of industrial strategic enterprises (railways, airports, post, water supply and electricity distribution),
4. retain state ownership of educational, health care and cultural establishments,
5. apply social requirements for foreign investors,
6. concentrate state investments in industrial and social infrastructure,
7. give priority to "green field" foreign investments.
1. retain state ownership of Elektrėnai and Kruonis electric power plants, which constitute a single complex with the Ignalina power plant
2. privatise transport infrastructure after evaluating its social consequences and specifying what entities must remain under state ownership
3. promote domestic and foreign investments by providing equal conditions for competition
"…private property as the basis of well-being and individual freedom" 1. restructure and privatise strategic enterprises,
2. limit government investments.
1. privatise, but retain state control of electricity and water supply, postal services, railways and other roads,
2. retain state management control in "natural monopolies,"
3. retain state ownership of social enterprises,
4. abolish monopoly and liberalise competition in telecommunications,
5. restructure and privatise the energy sector,
6. create conditions for domestic and foreign capital investments in all energy sector enterprises,
7. sell part of shares of large entities on the stock exchange.
 
Taxes
1. redistribute the tax burden in favour of the poor,
2. introduce real estate tax for individuals,
3. introduce progressive income taxation,
4. grant profit tax incentives for enterprises creating jobs and attracting investments
5. charge a reduced 9% rate of VAT on food stuffs, children commodities and utility services,
6. charge higher excise duties on luxury and prestige goods.
1. reduce corporate income tax to 15%,
2. charge for five years a reduced 5% rate of corporate income tax rate,
3. apply a reduced VAT rate on food stuffs, heating services, rural businesses, house building,
4. increase tax-exempt minimum income.
Pursue a foreseeable and consistent tax policy 1. abolish corporate income tax,
2. reduce personal income tax and set a ceiling on social security contributions,
3. exempt from taxation the minimum monthly wage,
4. charge lump-sum income tax on individual business activity,
5. replace road tax on corporate turnover by an annual vehicle registration fee,
6. phase out customs duties,
7. set the size of stamp duties and state levies based on the cost of government services,
8. abolish tax breaks and exemptions.
1. increase the role of direct taxes by reducing VAT on food stuffs, house building, computer software, etc.
2. introduce a provision that taxes are proportional to income received and property owned,
3. abolish road tax on corporate turnover.
1. introduce progressive income tax from 200,000 litas of annual income,
2. abolish VAT on food stuffs,
3. increase tax-exempt minimum income,
4. reduce excise duties on diesel fuel used in agriculture,
5. abolish payments to the Road Fund on corporate turnover,
6. apply tax incentives for job creation,
7. establish a ceiling on taxes and other mandatory dues and payments as a ratio of GDP.
Business Conditions
1. preserve and expand mechanisms of market regulation,
2. support SME development,
3. pursue regional development programmes,
4. promote exports,
5. apply more effectively protectionist and compensational tariffs plus antidumping measures,
6. reduce licensing applied for business and manufacturing,
7. establish the practice of collective agreements between employers and trade unions.
1. abolish prohibitions and restrictions imposed business,
2. reduce the number of controlling institutions
3. promote small, medium-sized and rural businesses,
4. increase state aid for export development by improving export promotion and actively exploring new markets,
5. apply non-tariff measures for local market protection.
1. create favourable business conditions oriented at prospering enterprises,
2. proceed with the Sunrise programme,
3. reduce bureaucracy through the Sunset programme.
1. implement business liberalisation proposals,
2. abolish government aid and corporate welfare programmes,
3. clearly define the spheres of state control, supervision and responsibility.
1. liberalise business and labour relations,
2. promote small business, exports and technologies,
3. abolish unnecessary business regulations and bureaucratic hurdles,
4. create a regulated labour market system,
5. reduced the number of licensed business activities.
 
Agriculture
1. establish quotas as well as minimum and interventionist purchase prices for major types of agricultural output,
2. promote export of agricultural production,
3. allocate no less than 10% of the national budget for agriculture,
4. complete land restitution,
5. remove restrictions on the purchase of land by Lithuanian legal entities.
1. establish priorities of the agrarian sector,
2. replace sale subsidies by direct payments for land and livestock,
3. apply a reduced VAT rate for electricity used in rural areas,
4. complete land restitution,
5. simplify procedures for the purchase of land.
Establish market relationships in agriculture 1. complete land restitution,
2. abolish division of land into agricultural and non-agricultural land,
3. legalise ownership rights to land for all legal entities,
4. replace production subsidies by social aid for rural dwellers,
5. replace price subsidies granted for agricultural production by promoting investment projects and direct payments.
1. complete land restitution,
2. grant legal entities a right to purchase agricultural land,
3. support and regulate domestic market,
4. increase exports of food stuffs,
5. introduce an interventionist purchase system for certain types of agricultural production (e.g. grain),
6. allocate 10% of the national budget for agriculture,
7. introduce direct payments for land and livestock,
8. compensate farmers for part of expenses on diesel fuel.
1. allocate 10% of the national budget for agriculture,
2. allocate government aid for land and livestock,
3. abolish excise duties on diesel fuel used in agriculture,
4. establish minimum purchase prices for agricultural production,
5. revoke liberalisation of the dairy market,
6. pursue market protection and export promotion policies,
7. legalise production of home-made spirits,
8. complete land restitution by the end of 2002,9. allow Lithuanian legal entities to buy agricultural land.
Monetary Policy
1. restore classical central banking functions,
2. reduce interest rates.
    Preserve the currency board arrangement and a transparent monetary policy 1. preserve the monetary policy based on a fixed exchange rate as well as the present exchange rate with the anchor currency, US dollar,
2. co-ordinate in the future Lithuania's monetary policy with the EU monetary policy,
3. support the Bank of Lithuania's policy aimed at phasing out the currency board arrangement,
4. compensate exporters' losses caused by euro/US dollar exchange rate fluctuations,
Restore classical central banking functions.
Budget and Finance
1. increase budget revenues by improving budget administration and promoting business development,
2. consolidate management of state resources,
3. implement the principles of strategic planning and program budgeting,
4. abandon the practice of planning state revenues from penalties and fines,
5. increase investment funding.
1. implement the principle of program budgeting,
2. revise state governance functions and reduce governance expenditures,
3. pursue fiscal decentralisation.
Implement a system of strategic planning and program budgeting 1. balance the national budget,
2. allocate budget resources by decision of parliament,
3. apply the principle of program budgeting,
4. reduce the size of the budget in absolute and relative terms by privatising state functions and narrowing objectives,
5. abandon the practice of planning budget revenues from penalties and confiscations,
6. limit state investments,
7. limit structural state borrowing,
8. establish fixed portions of municipal and state budgets,
9. eliminate redistribution of municipal revenues,
10. allow municipalities to issue municipal bonds.
1. limit general government expenditures and revise state functions,
2. consolidate the national budget,
3. set a limit of 3% of GDP for fiscal deficit,
4. commercialise activities of governmental institutions,
5. allow municipalities to issue municipal bonds,
6. set a limit of 30 % of GDP for total state debt.
 
Social Safety
1. adjust social benefits to inflation,
2. promote a system of fully-funded pension funds by using privatisation income,
3. introduce over a period of two or three years partial pensions for people ousted from the labour market who have three to five left until the retirement age,
4. provide social benefits on a means-tested basis.
1. create a multi-tier pension system, comprising state-guaranteed minimum benefits and fully-funded pension funds,
2. provide social benefits on a means-tested basis,
3. seek that compensations for utility services are provided for service recipients rather than suppliers.
Create a fully-funded pension system 1. create conditions for the operation of private pension funds, seeking to gradually replace state social insurance by private fully-funded insurance,
2. provide social benefits on a means-tested basis,
3. abolish individual pensions.
1. expand a mixed pension system, comprising state social insurance and private pension funds,
2. increase financing of social aid,
3. pay full pensions for working pensioners,
4. compensate low-income families for heating expenses.
1. provide social insurance for farmers' on favourable terms,
2. create conditions for insurance in private pension funds,
3. provide different types of support for various segments of society.