Biudžeto deficito ir valstybės skolos analizė 1990 - 2008 metais ; Legal analysis of budget deficit and public debt 1990 – 2008

Abstract

The subject of Master's work in Financial Law is relevant because of the current global economic situation: because of the emerged financial difficulties countries are in need to borrow. However, budget deficit would also increase. The economy of Lithuania, Latvia an Estonia is commonly considered as the Baltic Region economy and the subject of this research is budget deficit and public debt of Baltic States' from 1990 to 2008. The main objective is to ascertain what causes budget deficit's and public debt's uprising, its' changing and the dependance between both of them. To reach the aforesaid objective we analyse facts about budget deficit and public debt in Baltic States. We also find the factors that influence its' uprising, changing and results in medium and long term. We bring forward the hypothesis that the economy of the three Baltic States is reasonably considered as the economy of the whole Baltic Region while analysing it in confirmity with the criterion of budget deficit and public debt. To reach the objectives we analyse the economical theories about budget deficit, public debt and relations between them; legal acts that regulate how to balance a budget, governments' borrowing policy; Baltic States' convergence program, statistics of these three countries; guidelines and conclusions of European Commission and Council. After accomplishing the research the hypothesis that the economy of the three Baltic States is reasonably considered as the economy of the whole Baltic Region while analysing it in confirmity with the criterion of budget deficit and public debt was confirmed. We now make a conclusion that though countries met the similar developments while trying to solve the problems concerned with budget deficit and public debt the consequences were different because Baltic States took different actions to solve those problems. The implementations and its' direct influence to considered matters have been taken into consideration. We also offer recommendations that would be useful trying to reduce budget deficit and public debt. This work consists of the conception of budget deficit, the explanation and interpretation of different theories, the conception of public debt, the linking up of the concerned matters and theories.