- Report on Key Results in Areas of Government Activity was audited for the first time—no significant discrepancies were identified, but it needs to be improved.
- Significant errors were identified in the national, state, State Social Insurance Fund accounts and financial accounts of the Compulsory Health Insurance Fund; consequently, qualified audit opinions were issued. The most important recommendations were made to the Ministries of National Defence, Social Security and Labour, Health, and Finance.
- The audit showed that the current data on the implementation of the consolidated budget still do not provide a reliable picture of public finances as a whole.
- In the state budget implementation reports, EUR 916.8 million in expenditures were incorrectly classified by purpose.
- More than EUR 1 billion was eliminated as internal debt among general government entities, but the information necessary to substantiate this amount was not provided.
- State reserves increased by more than EUR 1.19 billion in 2025; therefore, it is important to establish clear principles for their accumulation and management as soon as possible to strengthen the state’s financial resilience.
Today, Auditor General Irena Segalovičienė will present the audit opinions on the country’s major financial accounts for 2025 to the Seimas. Ms. Segalovičienė noted that the government is taking important steps to strengthen accountability for performance results, but problems in public finance management still persist, making it difficult to clearly see how public funds are being used and what results are being achieved.
The National Audit Office fulfilled its constitutional duty and presented the opinions of its financial audits of the 2025 national and state financial accounts, as well as the accounts of the State social funds, the Compulsory Health Insurance Fund, and the Pension Annuity Fund. Qualified auditor’s opinions were issued on the national, state and State Social Insurance Fund accounts, as well as on the financial accounts of the Compulsory Health Insurance Fund. This means that significant errors were identified in the accounts relating to the accounting for state assets, the fund’s obligations regarding social benefits, and the actual amount of receivables.
“We have started to measure the results we achieve for the money spent in the country. However, important details are still missing from the public finance puzzle. Until we see the full picture, it will be more difficult to make the best decisions regarding state resources and future investments. That is why the auditors’ recommendations are aimed not only at correcting errors but also at strengthening public sector management,” says Auditor General Irena Segalovičienė.
The main factors underlying the auditors’ qualified opinions were problems with the accounting of state assets, deficiencies in the accounting and control of social benefits, and insufficient control over the use of a portion of state budget funds.
Problems with asset accounting persist
Of the EUR 90.87 billion in public sector assets reported in the national accounts, auditors were unable to confirm the accuracy of more than EUR 19 billion in data. In the State accounts, data on assets worth EUR 2.15 billion could not be confirmed, while in the municipal accounts, the figure was EUR 16.94 billion.
Auditors were unable to confirm the accuracy of some data on forest land and stands (EUR 15.8 billion), mineral resources (EUR 634.43 million), and cultural heritage assets (EUR 474.91 million). It was found that in some areas, reliable accounting and control systems have not yet been established to ensure accurate and comprehensive data on state-owned assets.
Social Insurance Fund has control gaps
The auditors were unable to confirm the accuracy of the EUR 454.9 million in expenditures for maternity, paternity, and childcare benefits. It was found that income from employment abroad is not taken into account when these benefits are granted and paid, and the control measures in place do not always ensure that similar benefits are not being paid for the same child in other countries at the same time. This also creates risks of abuse. The responsible authorities have committed to implementing the recommendations and submitting draft legislation within specific deadlines to close the gaps in legal regulation and protect the country’s social budget.
Significant problems with budget implementation data remain
The audit of the reports on the implementation of the state budget revealed that EUR 916.8 million in expenditures were classified under inappropriate expenditure categories, making it unclear in some cases how public funds were actually used. This problem has been recurring for several years and, in the auditors’ assessment, must be addressed by fundamentally changing the budget planning and reporting model.
The auditors were also unable to confirm the accuracy of EUR 26.5 million in expenditures. This was primarily due to shortcomings in the control of the use of state budget appropriations allocated to the Lithuanian Riflemen’s Union. Furthermore, it was not possible to confirm the legal and economic justification for EUR 7.8 million in patient transportation services paid for with state budget funds.
Controls over the use of public funds in the areas of national defence and public health should be strengthened
The audit showed that, as government investments increase, it is particularly important to ensure not only funding but also clear accountability for how it is used and the results achieved. Significant control deficiencies were identified in both the national defence and health care sectors.
In the national defence system, one example is the funding of the Lithuanian Riflemen’s Union. In order to strengthen public resilience and territorial defence, funding allocated to the Riflemen’s Union is being consistently increased - from EUR 18.73 million in 2025 to a planned EUR 41.6 million in 2028. However, the auditors found that the Ministry of National Defence had not ensured adequate control over the use of these appropriations. It was found that in the Lithuanian Riflemen’s Union’s 2025 report, a portion of the expenditures was incorrectly classified by purpose, and upon reviewing 32 of the 88 advance payments made in December 2025, deficiencies were identified in all of them. The National Audit Office recommended that the Ministry of National Defence establish clearer procedures for the planning and evaluation of the use of funds, as well as for financial reporting, and strengthen oversight of the activities of the Lithuanian Riflemen’s Union and the appropriations allocated to it.
In the health care sector, the auditors were unable to ascertain the legal and economic justification for patient transportation services funded by EUR 7.8 million in state budget funds. It was found that EUR 1.98 million in 2025 appropriations was used to pay for services provided as early as 2024. The audit also identified exceptionally expensive transportation cases - the cost of transporting a single patient reached 1,355 euros, and in some months, administrative costs for the service accounted for as much as 80–85 percent of all funds allocated for transportation. In the area of blood donation, the auditors found that the accounting for blood and its components has not yet been put in order, and the selling prices of blood components have not been reviewed since 2009, even though production costs have changed significantly during this period. The National Audit Office recommended that the Ministry of Health review the organization of patient transportation services, clearly define responsibilities, and implement a pricing system based on actual costs; and, in the area of blood donation, regulate the process of selling blood and its components and the principles of pricing.
The first-ever audit of the government‘s activity report
For the first time, the Report on Key Results in Areas of Government Activity was audited alongside the national accounts. In previous years, this report was not submitted to the National Audit Office on time, so the auditors were unable to assess the data presented in it and submit their opinion to the Seimas and the public. The purpose of this report is to present, in a single document, the most important results of government activities and the financial resources used to achieve them. The auditors did not identify any significant discrepancies between this report and the budget implementation data. However, the audit revealed that the report can and must be improved - for some indicators, not all information was provided, and the results achieved and their links to the funding used were not always clearly disclosed.
Data on the implementation of the consolidated budget remain inconclusive
Starting in 2024, in Lithuania consolidated budget, which covers the finances of the state, municipalities, and social funds, is being adopted. The audit revealed that current budget implementation data are not sufficiently accurate or informative - errors in the classification of expenditures, advance payments, and other discrepancies were identified that distort the state’s financial position. Therefore, it is recommended that the Ministry of Finance consider transitioning to an accrual-based budget model, which would provide a more accurate picture of the state’s financial position, liabilities, and risks, and reduce the burden of double reporting. In the National Audit Office’s assessment, the fact that the government uses two different financial accounting systems simultaneously (cash-based accounting, which shows only cash flows but does not reflect the actual situation, since it does not show debts or funds that we will be required to pay in the future, and accrual accounting, which is based on actual revenue and all future obligations), is not only an administrative burden but also an inefficient use of expertise, time, and state resources.
Public debt and reserves: a focus on data reliability and long-term management
Information on public debt is provided along with the national set of accounts. The audit confirmed that the unconsolidated data on debt incurred on behalf of the state is accurate in all material respects. However, it was found that the State Data Agency had eliminated more than EUR 1 billion as internal debt among general government entities but did not provide the information necessary to substantiate this amount.
Reserves are also important when assessing the state’s financial resilience. At the end of 2025, their total amount reached EUR 6.03 billion, an increase of more than EUR 1.19 billion (24.6 percent) over the year. The largest share of the reserves was accounted for by the SODRA reserve - EUR 4.52 billion - and its increase accounted for approximately 75 percent of the total annual growth in reserves. The Reserve (Stabilization) Fund held EUR 791 million, while the Compulsory Health Insurance Fund’s reserve stood at EUR 723.7 million. Although reserves have been growing steadily, there is still no clear definition of the amount of reserves needed to cushion against various state risks. The National Audit Office has previously recommended that the Ministry of Finance systematically review the legal framework governing reserves and establish general principles for their creation and management, linking them to the government’s borrowing policy. The Ministry of Finance has indicated that it is preparing a strategic rationale for reserve management. It is expected that this work will help create a coherent reserve management system, strengthen the government’s financial resilience, and enable planning for financial security over a horizon of more than three years.
Over the past three years, funding for the national defence system has increased by 73 percent and is projected to reach 5.38 percent of GDP in 2026. However, the National Audit Office’s audit, “Financial Management of the National Defence System”, shows that the state does not yet have a planning system adapted to this level of funding. Some of the key documents have not been updated for more than a decade, and the state still lacks a unified system that would allow it to link defence priorities, the funding allocated to them, and the results achieved.
Between 2021 and 2025, goods and services worth EUR 7.2 billion were purchased for the national defence system. For a detailed assessment, the auditors selected and evaluated 36 higher-risk procurement contracts (out of 111,000 procurement contracts carried out by national defence system contracting authorities between 2021 and 2025) and the activities of 12 national defence system contracting authorities. It is important to note that the procurement of arms and military equipment was not assessed during this audit—the National Audit Office is conducting a separate audit on “Procurement of Arms and Military Equipment,” which will be completed shortly.