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Article 121: Municipal Budgets and Local Levies

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Constitution Text

“Municipalities shall draft and approve their budgets. Municipal councils shall have the right, within the limits and according to the procedure provided for by law, to establish local levies; municipal councils may provide for tax and levy concessions at the expense of their own budgets.”

Summary

Municipalities draft and approve their own budgets. Municipal councils may set local levies within the limits and procedure provided by law, and may grant tax and levy concessions at the expense of their own budgets.

Key Points

  • •Municipalities draft and approve their own budgets.
  • •Municipal councils may establish local levies within limits set by law.
  • •Councils may grant tax and levy concessions at the expense of their own budget.

Practical Example

A city council sets a local levy for parking in the centre or exempts small businesses from part of local taxes, funding the concession from the municipal budget.

Exam Tips

Remember that the municipality approves its own budget and that local levies and concessions are set by the municipal council, not the Seimas.

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