The functioning of road transport in Lithuania is largely based on internal fi nancing which results from the economic and social function of transport infrastructure. Since 2002, the Road Maintenance and Development Program has been the fi nancing instrument of road infrastructure in Lithuania which fi nances roads of state importance and partly supports the maintenance and development of roads of local importance. In spite of the many sources of income generated by the Road Maintenance and

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... elopment Program, excise tax revenues account for about 90% of the total budget. However, it should be noted that some of these funds are used to "patch the national budget hole". And there is also the problem of budget losses from excise duty on fuels resulting from the existence of the grey market. Therefore, the reform of road transport fi nancing in Lithuania concerns primarily the improvement of the excise tax system and the increase of its contribution to the Road Maintenance and Development Program. Keywords Public expenditure; transport infrastructure fi nancing; road transport toll system; excise tax JEL Classifi cation: H54, H60, H83