Intra-budgetary redistribution of the Personal Income Tax in Lithuania is aimed at providing financial support for economically weaker municipalities. The present analysis is aimed at measuring level differences of intra-budgetary redistribution of the Personal Income Tax across municipalities as well as identifying the major problems created by this process.
Under the European Charter of Local Self-Government, the internal administrative structure and the resources of the governments should correspond to the needs of the local population as well as ensure effective governance. However, statistical data shows the growth of municipal bureaucracy despite demographic decline.
Following 2014 reforms, municipalities allocate social allowances by performing municipal, rather than the state function. This reform was aimed at achieving more transparent and targeted social benefit allocation process by decreasing the volume of improper or inappropriate payments.
Ageing of the Polish society means that every year more and more people will reach the retirement age. At the same time, the number of people of working age will be decreasing. In this context, it appears that the pension system reform implemented in 1999 introduced a not very fortunate principle to the Polish pension system.
We are witnessing the EU’s declining normative influence in three levels: inner circle of membership, middle circle of prospective members and outer circle of neighbourhood, and is expressed in the primacy of hard core economics, the weaker promotion of democracy, the inefficient political conditionality and the gradual realisation that illiberalism is becoming a threatening part of several national competitive politics.
The debate on the potential reform of the Polish pension system has brought to light many fallacies about capital pillar of the system. Let’s clear some of them up.