The system VIKSVA developed by the Ministry of Finance enables the central management of state funds, ensuring their efficient management, use, additional control of funds and uniform execution of payments. Budgetary institutions are provided with the services of opening and administering accounts, executing payment transactions and other services customary in electronic banking. Meanwhile, the state can use temporarily available funds, invest them and reduce borrowing costs.
“At this stage, joining of such institutions as the national promotional institution “Investicijų ir verslo garantijos“ (Investment and Business Guarantees) with the funds and financial instruments managed by them will give additional impetus to the consolidated management of public finances and improvement of the financial services provided,” Vice-Minister of Finance Darius Sadeckas says.
Budgetary institutions such as the National Audit Office, the General Prosecutor's Office, the Special Investigation Service, the State Security Department, the Office of the President, the Lithuanian National Drama Theatre, etc. are among those joining since July (The Government Resolution on the transfer of funds managed by institutions to the State treasury can be found here).
In the next stages, VIKSVA will be developed including institutions with specific needs and large volumes of payments. For example, a significant number of payments is made by funds administered by the State Social Insurance Fund Board. For this reason, the funds of these institutions are expected to be transferred in the last phase, in 2027. The new system is expected to be used by some 470 existing state budgetary, public bodies and funds.
VIKSVA started operating in June last year. Currently, the number of accounts opened with the State Treasury exceeds 1800. Since the start of operations, outgoing payments of EUR 3.3 billion (approximately 495 thousand payments) have already been made, including payments of EUR 2.5 million (approximately 37 thousand payments).
The system VIKSVA was created in order to centralize public sector financial services, unify processes, reduce administrative burden and service costs, improve the quality of services provided by the State Treasury. Preliminary estimates show that, if full consolidation of state funds is achieved, approximately EUR 2.6 million would be saved each year due to reduced volumes and costs of state borrowing, payment orders from budgetary institutions and account servicing costs.
Additional information:
- In December 2023, the State Treasury Department of the Ministry of Finance implemented a project “The Establishment of the Consolidated Account Management System of the State Treasury” co-financed by the European Union Structural Funds with a value of EUR 3.1 million (of which EUR 2,178 million was used to implement the system).
- The Single Treasury Account principle is one of the most widely applied ways in the area of public finance management by advanced countries to increase the efficiency of the management of public monetary resources by consolidating the collection and disposal of public funds in a single system.
- This principle is applied by almost all the most advanced member states of the Organisation for Economic Co-operation and Development (OECD) in the world in public finance management.
- In order to adopt good practices and adapt them to the management of public monetary resources, Lithuania has analysed the examples of the Treasury management of the European Union countries such as France and Sweden.
