Establishment of measures ensuring the effectiveness of public expenditure in legal regulation

Every state provides specific services to the society, for this reason state needs funds that are collected from the society on tax basis. To provide public services for the lowest price, it is necessary to ensure suitable system of measures ensuring the effectiveness of public expenditure. The thesis analyses the process of budget expenditure planning, the importance of involved subjects, also describes the essence of strategic planning documents as the base for program budget, focusing on priorities of Government activity, which, as it turned out during thesis writing process, was changes to program implementation plan of Government. Thesis also investigates the role of appropriations managers in ensuring effectiveness of public expenditure. It is revealed that legal regulation imposes an obligation for appropriations managers to use public funds efficiently and purposefully but improper regulation does not stop appropriations managers from abusing their positions, that is why the suggestion how to solve this problem is given in the thesis. The thesis reviews the role of National audit office, as the supreme audit institution, in ensuring the effectiveness of public expenditure. National audit office is one the main institutions that ensure informing the society about the state budget. Whereas Republic of Lithuania is a democratic republic, information about usage of tax payers money has to be accessible to the society. The problem is that Lithuanian society does not want to be interested in budget, that is why National audit office has got one more obligation – to make Lithuanian society interested and to make them participate in process of budgeting and control. By measures ensuring the effectiveness of public expenditure must be strive for achieving results for as low amount of public expenditure as it possible. The thesis discloses that annual review of public expenditure is necessary to improve spending efficiency and it is import to create an appropriate system for measuring results