According to the new method, a municipality will receive PIT share expressed in% based on the municipality's projected revenue from PIT per capita compared to the average projected PIT per capita of all municipalities.
Municipalities' whose projected revenue from PIT per capita is below the average projected revenue from PIT per capita of all municipalities will receive 100% share of PIT. Whereas those municipalities whose projected PIT per capita is above the average projected PIT per capita of all municipalities will become donors.
Due to the new regulations and following the budget for 2016, the structure of donor municipalities will change. Next year donor municipalities will be Vilnius city municipality which will receive 45.95% of collected PIT, Kaunas city municipality – 76.85% of PIT, Klaipeda city municipality – 87.32% of PIT and Neringa municipality – 59.04% of PIT.
The amount of PIT allocated to municipalities will also increase – from 72.8% in 2015 to 75.49% in 2016.
Special targeted grants totalling EUR 1.05 billion will be provided to finance specific expenses of municipalities. Their amount compared to 2015 will be by EUR 179 million higher. From 2016 these grants will include European Union and other international financial aid funds.
In 2016 budget revenue of municipalities from all sources will constitute EUR 2.5 billion, or by 13% or EUR 288 million more compared to 2015.
