The object of this dissertation is the evaluation of the effectiveness of fiscal policy as stabilizing tools in the Baltic countries. The aim of the research is to evaluate the effects of tax and fiscal policies on such Lithuanian, Latvian and Estonian macroeconomic variables as gross domestic product, employment, foreign direct investment and interest rates. Structural Vector Auto Regressive model (SVAR) has been employed for the analysis. Results of the research suggest that tax shocks may have different effects in different countries: labour tax increases adversely affect output and employment in all economies. It is only Lithuania where indirect tax increases negatively affect output while in Latvia and Estonia indirect tax shocks effects are positive. Persistent results of the negative corporate income tax effects on macroeconomic variables were obtained only in Lithuania as well, results in Latvia and Estonia vary depending on the SVAR variable composition. The results show that the increase in government spending leads to GDP, employment and foreign direct investment decline in Estonia and Lithuania, while in Latvia the negative impact is less significant. On the other hand, government investment has a positive impact on macroeconomic variables in all three economies. Interest rates are relatively insensitive to fiscal shocks in all Baltic countries, and this may be explained by the high degree of economic openness and dependence on global market fluctuations.
The object of this dissertation is the evaluation of the effectiveness of fiscal policy as stabilizing tools in the Baltic countries. The aim of the research is to evaluate the effects of tax and fiscal policies on such Lithuanian, Latvian and Estonian macroeconomic variables as gross domestic product, employment, foreign direct investment and interest rates. Structural Vector Auto Regressive model (SVAR) has been employed for the analysis. Results of the research suggest that tax shocks may have different effects in different countries: labour tax increases adversely affect output and employment in all economies. It is only Lithuania where indirect tax increases negatively affect output while in Latvia and Estonia indirect tax shocks effects are positive. Persistent results of the negative corporate income tax effects on macroeconomic variables were obtained only in Lithuania as well, results in Latvia and Estonia vary depending on the SVAR variable composition. The results show that the increase in government spending leads to GDP, employment and foreign direct investment decline in Estonia and Lithuania, while in Latvia the negative impact is less significant. On the other hand, government investment has a positive impact on macroeconomic variables in all three economies. Interest rates are relatively insensitive to fiscal shocks in all Baltic countries, and this may be explained by the high degree of economic openness and dependence on global market fluctuations.
The object of this dissertation is the evaluation of the effectiveness of fiscal policy as stabilizing tools in the Baltic countries. The aim of the research is to evaluate the effects of tax and fiscal policies on such Lithuanian, Latvian and Estonian macroeconomic variables as gross domestic product, employment, foreign direct investment and interest rates. Structural Vector Auto Regressive mode (SVAR) has been employed for the analysis. Results of the research suggest that tax shocks may have different effects in different countries: labour tax increases adversely affect output and employment in all economies. It is only Lithuania where indirect tax increases negatively affect output while in Latvia and Estonia indirect tax shocks effects are positive. Persistent results of the negative corporate income tax effects on macroeconomic variables were obtained only in Lithuania as well, results in Latvia and Estonia vary depending on the SVAR variable composition. The results show that the increase in government spending leads to GDP, employment and foreign direct investment decline in Estonia and Lithuania, while in Latvia the negative impact is less significant. On the other hand, public investment has a positive impact on macroeconomic variables in all three economies. Interest rates are relatively insensitive to fiscal shocks in all Baltic countries, and this may be explained by the high degree of economic openness and dependence on global market fluctuations.
The object of this dissertation is the evaluation of the effectiveness of fiscal policy as stabilizing tools in the Baltic countries. The aim of the research is to evaluate the effects of tax and fiscal policies on such Lithuanian, Latvian and Estonian macroeconomic variables as gross domestic product, employment, foreign direct investment and interest rates. Structural Vector Auto Regressive mode (SVAR) has been employed for the analysis. Results of the research suggest that tax shocks may have different effects in different countries: labour tax increases adversely affect output and employment in all economies. It is only Lithuania where indirect tax increases negatively affect output while in Latvia and Estonia indirect tax shocks effects are positive. Persistent results of the negative corporate income tax effects on macroeconomic variables were obtained only in Lithuania as well, results in Latvia and Estonia vary depending on the SVAR variable composition. The results show that the increase in government spending leads to GDP, employment and foreign direct investment decline in Estonia and Lithuania, while in Latvia the negative impact is less significant. On the other hand, public investment has a positive impact on macroeconomic variables in all three economies. Interest rates are relatively insensitive to fiscal shocks in all Baltic countries, and this may be explained by the high degree of economic openness and dependence on global market fluctuations.
Government's role in promoting the country's economy remains a relevant issue both in academics and politicians debates. Not only for individual countries but also for the European Union as a whole the promotion of high value-added activities, in particular in lower development small open economies which hardly recover from external economic shocks and experience significant social problems due to high unemployment level remains a relevant issue. The country's competitiveness and level of development, as well as the country's economy growth, depend on high value-added investment growth, and both private and public investments play a significant role in economy of each country. Government's role, in particular through the fiscal policy, in the promotion of these activities is crucial. The prevailing view in the scientific literature is that in developed countries public investment crowds out private investment, while in developing – crowds in, but it is not clear under what conditions these effects occur because the countries are very different. Also the effect of the taxes revenues and the government expenditure indicators on private investment is unclear because the effect of these variables on private investment has not been studied comprehensively. So the aim of the research is to evaluate the relationship between fiscal policy indicators, such as the government revenues from taxes and the government expenditure, and private investment comprehensively including indicators of macroeconomic environment in the Baltic States, by applying correlation and regression analysis. [.]
Government's role in promoting the country's economy remains a relevant issue both in academics and politicians debates. Not only for individual countries but also for the European Union as a whole the promotion of high value-added activities, in particular in lower development small open economies which hardly recover from external economic shocks and experience significant social problems due to high unemployment level remains a relevant issue. The country's competitiveness and level of development, as well as the country's economy growth, depend on high value-added investment growth, and both private and public investments play a significant role in economy of each country. Government's role, in particular through the fiscal policy, in the promotion of these activities is crucial. The prevailing view in the scientific literature is that in developed countries public investment crowds out private investment, while in developing – crowds in, but it is not clear under what conditions these effects occur because the countries are very different. Also the effect of the taxes revenues and the government expenditure indicators on private investment is unclear because the effect of these variables on private investment has not been studied comprehensively. So the aim of the research is to evaluate the relationship between fiscal policy indicators, such as the government revenues from taxes and the government expenditure, and private investment comprehensively including indicators of macroeconomic environment in the Baltic States, by applying correlation and regression analysis. [.]
Government's role in promoting the country's economy remains a relevant issue both in academics and politicians debates. Not only for individual countries but also for the European Union as a whole the promotion of high value-added activities, in particular in lower development small open economies which hardly recover from external economic shocks and experience significant social problems due to high unemployment level remains a relevant issue. The country's competitiveness and level of development, as well as the country's economy growth, depend on high value-added investment growth, and both private and public investments play a significant role in economy of each country. Government's role, in particular through the fiscal policy, in the promotion of these activities is crucial. The prevailing view in the scientific literature is that in developed countries public investment crowds out private investment, while in developing – crowds in, but it is not clear under what conditions these effects occur because the countries are very different. Also the effect of the taxes revenues and the government expenditure indicators on private investment is unclear because the effect of these variables on private investment has not been studied comprehensively. So the aim of the research is to evaluate the relationship between fiscal policy indicators, such as the government revenues from taxes and the government expenditure, and private investment comprehensively including indicators of macroeconomic environment in the Baltic States, by applying correlation and regression analysis. [.]
Government's role in promoting the country's economy remains a relevant issue both in academics and politicians debates. Not only for individual countries but also for the European Union as a whole the promotion of high value-added activities, in particular in lower development small open economies which hardly recover from external economic shocks and experience significant social problems due to high unemployment level remains a relevant issue. The country's competitiveness and level of development, as well as the country's economy growth, depend on high value-added investment growth, and both private and public investments play a significant role in economy of each country. Government's role, in particular through the fiscal policy, in the promotion of these activities is crucial. The prevailing view in the scientific literature is that in developed countries public investment crowds out private investment, while in developing – crowds in, but it is not clear under what conditions these effects occur because the countries are very different. Also the effect of the taxes revenues and the government expenditure indicators on private investment is unclear because the effect of these variables on private investment has not been studied comprehensively. So the aim of the research is to evaluate the relationship between fiscal policy indicators, such as the government revenues from taxes and the government expenditure, and private investment comprehensively including indicators of macroeconomic environment in the Baltic States, by applying correlation and regression analysis. [.]
The global outbreak of the COVID-19 virus has caused a major crisis affecting the population, economies and health systems. Travelling restrictions, suspended business activities, lack of healthcare measures and loss of revenue are linked to the effects of the COVID-19 crisis. The pandemic impacted increase of unemployment, decrease of exports and imports as well as negative changes in consumer pricing and number of bankruptcies. COVID-19 has affected not only economic activities but also had a strong impact on human health with a high number of deaths. Global COVID-19 crisis management included tax and public protection measures, the application of fiscal policy also played an important role. Fiscal measures adopted to manage the consequences of the pandemic included wage support, business assistance, tax deferrals, social benefits for the most vulnerable groups of population. Fiscal policy measures applied by the states, depended on the epidemiological situation in the country, country capacities and identified priority areas. The scientific research articles summarizes national actions and measures which were applied to reduce the consequences of COVID-19, as well as analyzes the relevance of fiscal policy. After completing the analysis of the scientific sources, the aim of this final project was identified to be the – investigation of the impact of fiscal measures in order to reduce the effects of COVID-19. The object of the research – fiscal policy measures in the context of COVID-19. COVID-19 virus spread worldwide at the end of the 1st quarter of 2020. Currently recorded over a million deaths caused by the virus. Analysis of statistical data showed significant increase in unemployment in the second quarter of 2020. Also, the volume of imports and exports decreased significantly. The increase in bankruptcies was also noticeable but at the same time new companies were emerging. The world's authorities have actively responded to the spread of the virus and taken urgent actions. The IMF provided financial assistance to the countries affected by the pandemic, the EU took steps to ensure population health protection, measures to stop the spread of the virus, disinformation and supported development of vaccines (Goniewicz et al. 2020). Fiscal policy is implemented through the government expenditure and use of revenue to influence the economy (IMF, 2020). The importance of fiscal policy has become apparent during the recent financial crisis, when countries have taken steps to increase spending and cut taxes to suspend the effects of the crisis. In the case of the COVID-19 crisis, the focus is on health care, income maintenance and the provision of social benefits and business support. Researches shown that fiscal policy based on increase in government spending is most appropriate for analyzing GDP, debt-to-GDP ratios, deficit-to-GDP ratios. Also, analyzing the changes in Lithuanian real estate prices, it is assumed that the fiscal measures adopted during the COVID-19 pandemic had an impact on the smaller decline of housing prices. In the United States, fiscal measures focused on unemployment insurance, unconditional benefits and liquidity-providing measures are expected to have had the greatest impact on COVID-19 crisis management. After analysis of scientific resources was decided to analyze the effectiveness of fiscal policy measures applied during the COVID-19 crisis. After assessing the limitations of the study, the analysis is performed taking Lithuania for a case study, analyzing household consumption and long-term loan interests and their reaction to the COVID-19 economic stimulus measures. The study showed that household consumption was significantly affected by the "Plan of Measures for Economic Stimulation and Mitigation of the Spread of Coronavirus (COVID-19)", identified in 2nd aim content. Without appropriate economic stimulus measures, household consumption would be lower by about 14% in the 2nd quarter of 2020, lower by about 3% in the 3rd quarter of 2020 and lower by 4.4% in the last quarter of 2020. Analyzing the changes in long-term loan interest rates, it is assumed that this indicator changes can be explained by social benefits and liquidity ratios, therefore, without the application of these economic stimulus measures, long-term loan interest rates would be 177% lower (-0.2%) in the 2nd quarter of 2020. In the 3rd quarter of 2020, long-term loan interest rates would reach -0.39%, and in the last quarter would reach -0.02%. Thus, household consumption and long-term loan interest rates are significantly affected by the 2nd and 3rd aims of the COVID-19 consequence reduction plan prepared by Lithuania, which seeks to preserve income of the population and help businesses to maintain liquidity. In terms of global analysis, there was decided to analyze COVID-19 fiscal plans in other countries. The analysis of the fiscal plans revealed that Germany accounted for the largest share of fiscal measures (30% GDP), Sweden (16% of GDP), Austria (about 13% of GDP), France (10% of GDP). Analyzing the structure of fiscal plans, it is assumed that the largest amount of funds is allocated for business assistance, and the smaller part – for population. In the case of Lithuania, the study showed that measures to preserve the income of the population have the greatest impact on changes in household consumption. Greece (around 2% of GDP) and France (around 1.4% of GDP) accounted for the largest share of funds allocated to the population. Long-term loan interest rates are significantly affected by measures supporting business and the population. In Germany, France, Finland, Lithuania, Sweden, Austria and Greece most funds were allocated to businesses. The research has shown that the economic stimulus measures put in place during the COVID-19 pandemic did not stop the negative developments in household consumption and long-term loan interest rates. However, the applied measures mitigated the impact to the analyzed indicators throughout the COVID-19 period.
The global outbreak of the COVID-19 virus has caused a major crisis affecting the population, economies and health systems. Travelling restrictions, suspended business activities, lack of healthcare measures and loss of revenue are linked to the effects of the COVID-19 crisis. The pandemic impacted increase of unemployment, decrease of exports and imports as well as negative changes in consumer pricing and number of bankruptcies. COVID-19 has affected not only economic activities but also had a strong impact on human health with a high number of deaths. Global COVID-19 crisis management included tax and public protection measures, the application of fiscal policy also played an important role. Fiscal measures adopted to manage the consequences of the pandemic included wage support, business assistance, tax deferrals, social benefits for the most vulnerable groups of population. Fiscal policy measures applied by the states, depended on the epidemiological situation in the country, country capacities and identified priority areas. The scientific research articles summarizes national actions and measures which were applied to reduce the consequences of COVID-19, as well as analyzes the relevance of fiscal policy. After completing the analysis of the scientific sources, the aim of this final project was identified to be the – investigation of the impact of fiscal measures in order to reduce the effects of COVID-19. The object of the research – fiscal policy measures in the context of COVID-19. COVID-19 virus spread worldwide at the end of the 1st quarter of 2020. Currently recorded over a million deaths caused by the virus. Analysis of statistical data showed significant increase in unemployment in the second quarter of 2020. Also, the volume of imports and exports decreased significantly. The increase in bankruptcies was also noticeable but at the same time new companies were emerging. The world's authorities have actively responded to the spread of the virus and taken urgent actions. The IMF provided financial assistance to the countries affected by the pandemic, the EU took steps to ensure population health protection, measures to stop the spread of the virus, disinformation and supported development of vaccines (Goniewicz et al. 2020). Fiscal policy is implemented through the government expenditure and use of revenue to influence the economy (IMF, 2020). The importance of fiscal policy has become apparent during the recent financial crisis, when countries have taken steps to increase spending and cut taxes to suspend the effects of the crisis. In the case of the COVID-19 crisis, the focus is on health care, income maintenance and the provision of social benefits and business support. Researches shown that fiscal policy based on increase in government spending is most appropriate for analyzing GDP, debt-to-GDP ratios, deficit-to-GDP ratios. Also, analyzing the changes in Lithuanian real estate prices, it is assumed that the fiscal measures adopted during the COVID-19 pandemic had an impact on the smaller decline of housing prices. In the United States, fiscal measures focused on unemployment insurance, unconditional benefits and liquidity-providing measures are expected to have had the greatest impact on COVID-19 crisis management. After analysis of scientific resources was decided to analyze the effectiveness of fiscal policy measures applied during the COVID-19 crisis. After assessing the limitations of the study, the analysis is performed taking Lithuania for a case study, analyzing household consumption and long-term loan interests and their reaction to the COVID-19 economic stimulus measures. The study showed that household consumption was significantly affected by the "Plan of Measures for Economic Stimulation and Mitigation of the Spread of Coronavirus (COVID-19)", identified in 2nd aim content. Without appropriate economic stimulus measures, household consumption would be lower by about 14% in the 2nd quarter of 2020, lower by about 3% in the 3rd quarter of 2020 and lower by 4.4% in the last quarter of 2020. Analyzing the changes in long-term loan interest rates, it is assumed that this indicator changes can be explained by social benefits and liquidity ratios, therefore, without the application of these economic stimulus measures, long-term loan interest rates would be 177% lower (-0.2%) in the 2nd quarter of 2020. In the 3rd quarter of 2020, long-term loan interest rates would reach -0.39%, and in the last quarter would reach -0.02%. Thus, household consumption and long-term loan interest rates are significantly affected by the 2nd and 3rd aims of the COVID-19 consequence reduction plan prepared by Lithuania, which seeks to preserve income of the population and help businesses to maintain liquidity. In terms of global analysis, there was decided to analyze COVID-19 fiscal plans in other countries. The analysis of the fiscal plans revealed that Germany accounted for the largest share of fiscal measures (30% GDP), Sweden (16% of GDP), Austria (about 13% of GDP), France (10% of GDP). Analyzing the structure of fiscal plans, it is assumed that the largest amount of funds is allocated for business assistance, and the smaller part – for population. In the case of Lithuania, the study showed that measures to preserve the income of the population have the greatest impact on changes in household consumption. Greece (around 2% of GDP) and France (around 1.4% of GDP) accounted for the largest share of funds allocated to the population. Long-term loan interest rates are significantly affected by measures supporting business and the population. In Germany, France, Finland, Lithuania, Sweden, Austria and Greece most funds were allocated to businesses. The research has shown that the economic stimulus measures put in place during the COVID-19 pandemic did not stop the negative developments in household consumption and long-term loan interest rates. However, the applied measures mitigated the impact to the analyzed indicators throughout the COVID-19 period.
The global outbreak of the COVID-19 virus has caused a major crisis affecting the population, economies and health systems. Travelling restrictions, suspended business activities, lack of healthcare measures and loss of revenue are linked to the effects of the COVID-19 crisis. The pandemic impacted increase of unemployment, decrease of exports and imports as well as negative changes in consumer pricing and number of bankruptcies. COVID-19 has affected not only economic activities but also had a strong impact on human health with a high number of deaths. Global COVID-19 crisis management included tax and public protection measures, the application of fiscal policy also played an important role. Fiscal measures adopted to manage the consequences of the pandemic included wage support, business assistance, tax deferrals, social benefits for the most vulnerable groups of population. Fiscal policy measures applied by the states, depended on the epidemiological situation in the country, country capacities and identified priority areas. The scientific research articles summarizes national actions and measures which were applied to reduce the consequences of COVID-19, as well as analyzes the relevance of fiscal policy. After completing the analysis of the scientific sources, the aim of this final project was identified to be the – investigation of the impact of fiscal measures in order to reduce the effects of COVID-19. The object of the research – fiscal policy measures in the context of COVID-19. COVID-19 virus spread worldwide at the end of the 1st quarter of 2020. Currently recorded over a million deaths caused by the virus. Analysis of statistical data showed significant increase in unemployment in the second quarter of 2020. Also, the volume of imports and exports decreased significantly. The increase in bankruptcies was also noticeable but at the same time new companies were emerging. The world's authorities have actively responded to the spread of the virus and taken urgent actions. The IMF provided financial assistance to the countries affected by the pandemic, the EU took steps to ensure population health protection, measures to stop the spread of the virus, disinformation and supported development of vaccines (Goniewicz et al. 2020). Fiscal policy is implemented through the government expenditure and use of revenue to influence the economy (IMF, 2020). The importance of fiscal policy has become apparent during the recent financial crisis, when countries have taken steps to increase spending and cut taxes to suspend the effects of the crisis. In the case of the COVID-19 crisis, the focus is on health care, income maintenance and the provision of social benefits and business support. Researches shown that fiscal policy based on increase in government spending is most appropriate for analyzing GDP, debt-to-GDP ratios, deficit-to-GDP ratios. Also, analyzing the changes in Lithuanian real estate prices, it is assumed that the fiscal measures adopted during the COVID-19 pandemic had an impact on the smaller decline of housing prices. In the United States, fiscal measures focused on unemployment insurance, unconditional benefits and liquidity-providing measures are expected to have had the greatest impact on COVID-19 crisis management. After analysis of scientific resources was decided to analyze the effectiveness of fiscal policy measures applied during the COVID-19 crisis. After assessing the limitations of the study, the analysis is performed taking Lithuania for a case study, analyzing household consumption and long-term loan interests and their reaction to the COVID-19 economic stimulus measures. The study showed that household consumption was significantly affected by the "Plan of Measures for Economic Stimulation and Mitigation of the Spread of Coronavirus (COVID-19)", identified in 2nd aim content. Without appropriate economic stimulus measures, household consumption would be lower by about 14% in the 2nd quarter of 2020, lower by about 3% in the 3rd quarter of 2020 and lower by 4.4% in the last quarter of 2020. Analyzing the changes in long-term loan interest rates, it is assumed that this indicator changes can be explained by social benefits and liquidity ratios, therefore, without the application of these economic stimulus measures, long-term loan interest rates would be 177% lower (-0.2%) in the 2nd quarter of 2020. In the 3rd quarter of 2020, long-term loan interest rates would reach -0.39%, and in the last quarter would reach -0.02%. Thus, household consumption and long-term loan interest rates are significantly affected by the 2nd and 3rd aims of the COVID-19 consequence reduction plan prepared by Lithuania, which seeks to preserve income of the population and help businesses to maintain liquidity. In terms of global analysis, there was decided to analyze COVID-19 fiscal plans in other countries. The analysis of the fiscal plans revealed that Germany accounted for the largest share of fiscal measures (30% GDP), Sweden (16% of GDP), Austria (about 13% of GDP), France (10% of GDP). Analyzing the structure of fiscal plans, it is assumed that the largest amount of funds is allocated for business assistance, and the smaller part – for population. In the case of Lithuania, the study showed that measures to preserve the income of the population have the greatest impact on changes in household consumption. Greece (around 2% of GDP) and France (around 1.4% of GDP) accounted for the largest share of funds allocated to the population. Long-term loan interest rates are significantly affected by measures supporting business and the population. In Germany, France, Finland, Lithuania, Sweden, Austria and Greece most funds were allocated to businesses. The research has shown that the economic stimulus measures put in place during the COVID-19 pandemic did not stop the negative developments in household consumption and long-term loan interest rates. However, the applied measures mitigated the impact to the analyzed indicators throughout the COVID-19 period.
The global outbreak of the COVID-19 virus has caused a major crisis affecting the population, economies and health systems. Travelling restrictions, suspended business activities, lack of healthcare measures and loss of revenue are linked to the effects of the COVID-19 crisis. The pandemic impacted increase of unemployment, decrease of exports and imports as well as negative changes in consumer pricing and number of bankruptcies. COVID-19 has affected not only economic activities but also had a strong impact on human health with a high number of deaths. Global COVID-19 crisis management included tax and public protection measures, the application of fiscal policy also played an important role. Fiscal measures adopted to manage the consequences of the pandemic included wage support, business assistance, tax deferrals, social benefits for the most vulnerable groups of population. Fiscal policy measures applied by the states, depended on the epidemiological situation in the country, country capacities and identified priority areas. The scientific research articles summarizes national actions and measures which were applied to reduce the consequences of COVID-19, as well as analyzes the relevance of fiscal policy. After completing the analysis of the scientific sources, the aim of this final project was identified to be the – investigation of the impact of fiscal measures in order to reduce the effects of COVID-19. The object of the research – fiscal policy measures in the context of COVID-19. COVID-19 virus spread worldwide at the end of the 1st quarter of 2020. Currently recorded over a million deaths caused by the virus. Analysis of statistical data showed significant increase in unemployment in the second quarter of 2020. Also, the volume of imports and exports decreased significantly. The increase in bankruptcies was also noticeable but at the same time new companies were emerging. The world's authorities have actively responded to the spread of the virus and taken urgent actions. The IMF provided financial assistance to the countries affected by the pandemic, the EU took steps to ensure population health protection, measures to stop the spread of the virus, disinformation and supported development of vaccines (Goniewicz et al. 2020). Fiscal policy is implemented through the government expenditure and use of revenue to influence the economy (IMF, 2020). The importance of fiscal policy has become apparent during the recent financial crisis, when countries have taken steps to increase spending and cut taxes to suspend the effects of the crisis. In the case of the COVID-19 crisis, the focus is on health care, income maintenance and the provision of social benefits and business support. Researches shown that fiscal policy based on increase in government spending is most appropriate for analyzing GDP, debt-to-GDP ratios, deficit-to-GDP ratios. Also, analyzing the changes in Lithuanian real estate prices, it is assumed that the fiscal measures adopted during the COVID-19 pandemic had an impact on the smaller decline of housing prices. In the United States, fiscal measures focused on unemployment insurance, unconditional benefits and liquidity-providing measures are expected to have had the greatest impact on COVID-19 crisis management. After analysis of scientific resources was decided to analyze the effectiveness of fiscal policy measures applied during the COVID-19 crisis. After assessing the limitations of the study, the analysis is performed taking Lithuania for a case study, analyzing household consumption and long-term loan interests and their reaction to the COVID-19 economic stimulus measures. The study showed that household consumption was significantly affected by the "Plan of Measures for Economic Stimulation and Mitigation of the Spread of Coronavirus (COVID-19)", identified in 2nd aim content. Without appropriate economic stimulus measures, household consumption would be lower by about 14% in the 2nd quarter of 2020, lower by about 3% in the 3rd quarter of 2020 and lower by 4.4% in the last quarter of 2020. Analyzing the changes in long-term loan interest rates, it is assumed that this indicator changes can be explained by social benefits and liquidity ratios, therefore, without the application of these economic stimulus measures, long-term loan interest rates would be 177% lower (-0.2%) in the 2nd quarter of 2020. In the 3rd quarter of 2020, long-term loan interest rates would reach -0.39%, and in the last quarter would reach -0.02%. Thus, household consumption and long-term loan interest rates are significantly affected by the 2nd and 3rd aims of the COVID-19 consequence reduction plan prepared by Lithuania, which seeks to preserve income of the population and help businesses to maintain liquidity. In terms of global analysis, there was decided to analyze COVID-19 fiscal plans in other countries. The analysis of the fiscal plans revealed that Germany accounted for the largest share of fiscal measures (30% GDP), Sweden (16% of GDP), Austria (about 13% of GDP), France (10% of GDP). Analyzing the structure of fiscal plans, it is assumed that the largest amount of funds is allocated for business assistance, and the smaller part – for population. In the case of Lithuania, the study showed that measures to preserve the income of the population have the greatest impact on changes in household consumption. Greece (around 2% of GDP) and France (around 1.4% of GDP) accounted for the largest share of funds allocated to the population. Long-term loan interest rates are significantly affected by measures supporting business and the population. In Germany, France, Finland, Lithuania, Sweden, Austria and Greece most funds were allocated to businesses. The research has shown that the economic stimulus measures put in place during the COVID-19 pandemic did not stop the negative developments in household consumption and long-term loan interest rates. However, the applied measures mitigated the impact to the analyzed indicators throughout the COVID-19 period.
The improvement of public finances is an important issue for any country's development. This content is changing public sector and sustainability of citizens environment; therefore, much attention is paid to the widespread improvement of financial research. In addition, activities may be organized in connection with applicable higher education programs. On the other hand, education in the field of financial management in different countries is interpreted differently. It has become increasingly important that such a discussion does not directly contribute to the overall development of financial education in recent years. One of the possible ways to handle personal finances in various economic conditions may be to change the attitude of students to the knowledge provided by universities. Young people should be supported by financial education included in their study programs. Proper management of these programs helps to improve the educational process and their economic ituation. Ultimately, the best way to determine the tax paid by individuals and legal entities could be called their rate of tax burden. However, an ordinary citizen who lives only from the income related to labor relations and has a higher tax burden may be a more important problem. Another key objective of the paper is to disclose how citizens perceive taxation and public spending. The objective of the paper is to show the impact of the tax incidence in Lithuania during the last decade. Thus, we can consider almost doubled increase in the burden of direct taxes compared with the officially declared average tax burden of the country. Nonetheless, an additional tax burden includes hidden taxes related to payments from the individuals' total income. On the average, the tax burden for an ordinary worker can be about two-thirds of his/her gross annual income. The perception of the tax burden can lead every citizen of the country to be responsible for all the actions of public servants and budget planning processes. Raising government revenues is often difficult due to the use of the concept of fixed costs for public sector when a person directly pays additional payments for most public sector services. Thus, the confusion of terms is quite constant showing the need for literacy in public finance. In recent years, the accredited tax burden of Lithuania has been more than thirty per cent of the country's nominal gross domestic product. However, political leaders and experts suggest plans for increasing Lithuania's tax burden. Besides, there was a critical error concerning contributions to social insurance and compulsory health insurance funds. Fortunately, in 2018, the national budget included social payments in the budget revenues.
The improvement of public finances is an important issue for any country's development. This content is changing public sector and sustainability of citizens environment; therefore, much attention is paid to the widespread improvement of financial research. In addition, activities may be organized in connection with applicable higher education programs. On the other hand, education in the field of financial management in different countries is interpreted differently. It has become increasingly important that such a discussion does not directly contribute to the overall development of financial education in recent years. One of the possible ways to handle personal finances in various economic conditions may be to change the attitude of students to the knowledge provided by universities. Young people should be supported by financial education included in their study programs. Proper management of these programs helps to improve the educational process and their economic ituation. Ultimately, the best way to determine the tax paid by individuals and legal entities could be called their rate of tax burden. However, an ordinary citizen who lives only from the income related to labor relations and has a higher tax burden may be a more important problem. Another key objective of the paper is to disclose how citizens perceive taxation and public spending. The objective of the paper is to show the impact of the tax incidence in Lithuania during the last decade. Thus, we can consider almost doubled increase in the burden of direct taxes compared with the officially declared average tax burden of the country. Nonetheless, an additional tax burden includes hidden taxes related to payments from the individuals' total income. On the average, the tax burden for an ordinary worker can be about two-thirds of his/her gross annual income. The perception of the tax burden can lead every citizen of the country to be responsible for all the actions of public servants and budget planning processes. Raising government revenues is often difficult due to the use of the concept of fixed costs for public sector when a person directly pays additional payments for most public sector services. Thus, the confusion of terms is quite constant showing the need for literacy in public finance. In recent years, the accredited tax burden of Lithuania has been more than thirty per cent of the country's nominal gross domestic product. However, political leaders and experts suggest plans for increasing Lithuania's tax burden. Besides, there was a critical error concerning contributions to social insurance and compulsory health insurance funds. Fortunately, in 2018, the national budget included social payments in the budget revenues.
The improvement of public finances is an important issue for any country's development. This content is changing public sector and sustainability of citizens environment; therefore, much attention is paid to the widespread improvement of financial research. In addition, activities may be organized in connection with applicable higher education programs. On the other hand, education in the field of financial management in different countries is interpreted differently. It has become increasingly important that such a discussion does not directly contribute to the overall development of financial education in recent years. One of the possible ways to handle personal finances in various economic conditions may be to change the attitude of students to the knowledge provided by universities. Young people should be supported by financial education included in their study programs. Proper management of these programs helps to improve the educational process and their economic ituation. Ultimately, the best way to determine the tax paid by individuals and legal entities could be called their rate of tax burden. However, an ordinary citizen who lives only from the income related to labor relations and has a higher tax burden may be a more important problem. Another key objective of the paper is to disclose how citizens perceive taxation and public spending. The objective of the paper is to show the impact of the tax incidence in Lithuania during the last decade. Thus, we can consider almost doubled increase in the burden of direct taxes compared with the officially declared average tax burden of the country. Nonetheless, an additional tax burden includes hidden taxes related to payments from the individuals' total income. On the average, the tax burden for an ordinary worker can be about two-thirds of his/her gross annual income. The perception of the tax burden can lead every citizen of the country to be responsible for all the actions of public servants and budget planning processes. Raising government revenues is often difficult due to the use of the concept of fixed costs for public sector when a person directly pays additional payments for most public sector services. Thus, the confusion of terms is quite constant showing the need for literacy in public finance. In recent years, the accredited tax burden of Lithuania has been more than thirty per cent of the country's nominal gross domestic product. However, political leaders and experts suggest plans for increasing Lithuania's tax burden. Besides, there was a critical error concerning contributions to social insurance and compulsory health insurance funds. Fortunately, in 2018, the national budget included social payments in the budget revenues.