PROBLEMS OF FINANCIAL INDEPENDENCE OF MUNICIPALITIES

The author considers a structure of municipal budget revenue. Municipal revenue is the most significant part of financial assets of municipalities. It forms the financial foundation of local self-government. In the paper the author analyzes contents of the principle of financial independence of municipalities established in the European Charter of Local Self-Government (hereinafter referred to as the Charter), its transposition into the national law system and implementation in Lithuanian local self-government. Causes of decreasing financial independence of municipalities are discussed and their possible solutions are provided.