5.1.3 Allocation of public funds
The Law on Budget and Financial Management (1994) determines the procedures for the formulation, approval and implementation of the state budget and local government budgets, and responsibilities in the budget process. The Law on the State Budget is adopted every year, defining the distribution of the state budget and transfers to local government budgets.
The Law on the State Culture Capital Foundation (2005) defines the legal status of the CCF as a public foundation, the establishment and the procedures for the accumulation, management and utilisation of its resources. The law was first adopted in 1997, determining that the budget of the CCF was to be supplemented from a 3% alcohol and tobacco excise tax. In 2003, a new Law on the CCF was adopted, which changed its legal status to a public foundation and changed the source of its funding. It was decided that the CCF would be part of the budget of the Ministry of Culture. According to the recent amendments to the Law on the CCF, the budget of the foundation should increase every year: in 2005-2007 it increased by 10% each year. However, due to the recession its budget in 2010 was reduced to 2.1 million LVL (3 million EUR), which was by 72% less than in 2008 (see chapter 2.1).
Chapitre publié: 08-10-2014