F. Jaseviciene, Doctor of Sciences (Economics), E. Rudzionyte, PhD in Economics Vilnius University, Vilnius, Lithuania ANALYSIS OF BUDGET DEFICIT AND ITS PROBLEMS IN LITHUANIA

Budget deficit is one of the most important parts of macroeconomics. Since 1990, the government of the Lithuanian Republic has been faced with problems in balancing the budget deficit; most of the years, the country’s budget was deficit with the lack of incoming money flow. The budget deficit value in Lithuania has been a significant theme since 2004, when Lithuania became part of the European Union, and one of the liabilities was to insure the litas replacement with euro currency and the budget deficit was one of the Maastricht’s criteria. Also it is very important to maintain effective management of public finances. The government is responsible for managing the country’s budget in respect to various economical parameters, for example, GDP, inflation rate, unemployment rate, etc., in order to plan income level and distribute it to the relevant economic areas. Also, the budget deficit’s problems are revealed in this article.

Keywords: budget deficit, macroeconomic parameters, budget, convergence criteria.

DOI: http://dx.doi.org/10.17721/1728-2667.2015/174-9/7

    1. Buskeviciute, E. (2008) Public Finances. Kaunas. Technologija. 57-144 p.
    2. Chinn, M. D., Ito, H. (2007) Current account balances, financial development and institutions: assaying the world “saving glut”. Journal of International Money and Finance, Nr. 26 (4), 546-569.
    3. ECB (2014) EURIBOR statistical data. Link: http://sdw.ecb.europa.eu/ browseTable.do PROVIDER_FM_ID=EURIBOR1YD_&DATASET=0&node=bbn175&FREQ=Q&sfl1=4&sfl4=4&SERIES_KEY=143.FM.Q.U2.EUR.RT.M M.EURIBOR1YD_.HSTA
    4. EUROSTAT. Budget deficit in EU. Link: http://epp.eurostat.ec.europa.eu/portal/page/portal/government_finance_ statistics/data/main_tables
    5. EUROSTAT. Lithuania, Latvia and Estonia public revenue and expenditures: Link: http://appsso.eurostat.ec.europa.eu/nui/submitView TableAction.do
    6. Gylys, P. (2009) The macroeconomic policy trap: Lithuania case. Economics. Nr. 88, p. 33-51.
    7. Gu, X. (2012) Determinants of China’s Trade Balance. School of Business: James Cook University. Townswile campus. Australia.
    8. Janulyte, L. (2011) Principals of public debt impact to economy. Contemporary Issues In Business, Management And Education’2011. p. 123-133.
    9. Kumhof M.,Laxion D.(2013) Fiscal deficits and current account deficits. Journal Economic Dynamic and control.Valume 37, Issue 10.
    10.Karmelavicius, J., Klyviene, V. (2012) Impact for Baltic macroeconomic indicators to changes in fiscal policy analysis. Pinigu studijos. Nr. 16(1), p. 30-48.
    11. Kregzde, A. (2013) The safe ceiling of Lithuania budget deficit. Economics, Nr. 3 (92), p.74-88.
    12. Lerner, A.P. (1948) “The Burden of the National Debt”, in Income, Employment, and Public Policy: Essays in Honour of Alvin H. Hansen, ed. L.A. Metzler et al. New York: W.W. Norton.
    13. Lithuania Republic Ministry of Finance (2013) Planning and confirmation of public budget. Link: http://www.finmin.lt/web/finmin/biudzplan 14. Lithuania Republic Ministry of Finance (2014) Debt of Lithuania
    Republic. Link: http://www.finmin.lt/web/finmin/leidiniai/skola.
    15. Lithuania Republic Ministry of Finance (2014) Lithuania’s debt
    program. Link: http://www.finmin.lt/web/finmin/2014_biudzetas/skola.
    16. Lithuania Republic Ministry of Finance. Public budget deficit statistics. Link: http://www.finmin.lt/web/finmin//auktualus_duomenys/
    17. Lithuania Republic Ministry of Finance (2014) Projections of
    Lithuania’s economic indicators. Link: http://www.finmin.lt/web/finmin/ aktualus_duomenys/makroekonomika.
    18. Lithuania Republic Ministry of Finance (2014) 2015 public budget. Financial indicators. Link: http://www.finmin.lt/finmin.lt/failai/veiklos_kryptys_ biudzetas/2015_biudzetas/2015_biudzeto_skaidres_LRS_20141021.pdf
    19. Lithuania Department of Statistics. Public budget deficit and debt. Link: http://osp.stat.gov.lt/temines-lenteles41.
    20. Lithuania Department of Statistics. GDP. Website address: http://osp.stat.gov.lt/web/guest/statistiniu-rodikliu-analize?portletFormName= visualization&hash=ecf34824-def2-4279-9e74-0810548042d4
    21.Lithuania Department of Statistics. Inflation rate. Link: http://osp.stat.gov.lt/web/guest/statistiniu-rodikliu-analize?portletFormName= visualization&hash=3666008c-2b5b-48ab-825e-e8d7231ee04e
    22. Lithuania Department of Statistics. Employment and unemployment rates in Lithuania. Link: http://osp.stat.gov.lt/temines-lenteles20
    23. Navickas, V., Stuopytė, Z. (2000) Public debt and budget deficit impact to economy. Social studies, Nr. 5 (26), p. 34-40.
    24. Rakauskiene, O.G. (2006) The public economic policy (fiscal, foreign trade and social policy): Monography. Vilnius. Mykolo Romerio universiteto press center. 215-317 p.
    25. Sang Ho, L. (2007) Government deficit financing and stabilization. Journal of economic studies. Nr. 15 p. 34-44.
    26. Sineviciens, L., Vasiliauskaite, A. (2010) Features of the cyclical fiscal policies in the context of economic development. Ekonomika ir vadyba. Nr. 15, p. 1024-1030.
    27. Snieska, V., Baumiliene, V. and others (2005) Macroeconomics. Kaunas. Technologija 195-200 p.


  • pdf 174_42-51
    File size: 575 kB Downloads: 2186