Law No. I-533 “On local government.”

The purpose of this Law is to promote and develop local self-government as a basis for the development of a democratic state. This Law establishes the procedure for the formation and activities of municipal institutions implementing the provisions of the Constitution of the Republic of Lithuania and the European Charter of Local Self-Government, defines the principles of local self-government, municipal institutions and their competence, functions, basics. The provisions of this Law are harmonized with the legal acts of the European Union specified in the Annex to this Law. Local self -government is the self-regulation and self-efficacy of a community of permanent residents of an administrative unit of the state territory established by law, which has the right of self-government guaranteed by the Constitution, in accordance with the competence defined by the Constitution and laws. The main principles on which local self-government is based are: (a) representative democracies; (b) the independence and freedom of activity of municipalities in accordance with the competence defined in the Constitution and laws; (c) the supremacy of the municipal council over the municipal executive bodies accountable thereto; (d) the accountability of the municipal executive bodies to the municipal council; (e) responsibility to the municipal community; (f) the legality of the activities of the municipality and the decisions adopted by the municipal bodies; (g) coordination of the interests of municipalities and the state in the management of public affairs of municipalities; (h) coordination of the interests of the community and individual residents of the municipality; (i) the participation of the residents of the municipality in the management of public affairs of the municipality; (j) transparency of activities; (k) planning and development planning; (l) reacting to the opinion of the residents of the municipality; (m) guaranteeing and respecting human rights and freedoms; (n) subsidiarity; and (o) publicity. A municipality is an administrative unit of the state territory, whose community of residents has the state-guaranteed right of self-government. The right of self-government is guaranteed to the administrative units of the state territory provided for by law. The competence of self-governing institutions is independent and delegated by the state. Self-government institutions, when making decisions on matters of competence delegated by the state, are guided by laws, Government resolutions and other by-laws. State institutions operate and control self-government institutions implementing functions delegated by the state, only in the cases and forms provided for by law.