This second OECD Review of Lithuania’s Independent Fiscal Institution, the Budget Monitoring Department (BMD), assesses progress since the first review in 2019 and evaluates how the institution can remain effective in light of new challenges. The review finds that the BMD has strengthened its analytical capacity, enhanced transparency in forecasting, and invested in clearer communication, but its embedded status within the National Audit Office continues to limit its independence, visibility, and impact. With the introduction of the 2024 EU Economic Governance Framework, Lithuania now faces new legal requirements for independent fiscal institutions, alongside mounting fiscal pressures from higher defence spending and demographic change. This review provides an updated set of recommendations to reinforce the BMD’s independence, clarify its mandate, and strengthen its role as a credible independent fiscal institution in this new fiscal context.