Following the publication of the analysis “The Growth of Municipal Administrations versus the Demographic Decline”, the Lithuanian Free Market Institute has been invited to present its insights and recommendations on the size of administrative personnel in Lithuanian municipalities before the Parliamentary Committee on State Administration and Local Authorities.
The Lithuanian Free Market Institute presented its research and recommendations on the issue on 30 September, 2015. In its presentation LFMI noted that although the demographic decline in Lithuania has lasted for over two decades, municipal administrations continue to expand and the ever-increasing number of administrative personnel is becoming an unbearable financial burden on the taxpayers. LFMI also stressed that although a reduction in administrative apparatus is inevitable, it should not constitute mere redundancies and future decisions should delineate clearly defined areas of activities for each of the departments, staff education and training, regular monitoring of the organisational structure, as well as other measures aimed at increasing the efficiency of municipal administrations.
The Chairman of the Committee Valentinas Bukauskas adhered to LFMI’s position and stressed the importance of increasing the efficiency of using municipal funding. Other members of the Committee were interested in the possibilities of establishing the maximum number of administrative personnel allowed or the amount of budgetary appropriations intended to cover personnel-related costs.
