Journal of Security and Sustainability Issues

This paper analyses projections of defence expenditure in the Bucharest Nine (B9) countries in the context of NATO’s new commitment from the 2025 Hague Summit. Based on historical data and national declarations, we model two scenarios for development through 2035: the baseline trend and national ambition. The results show significant polarization within B9 countries. While the countries of the northeastern flank (Poland, the Baltic states) are accelerating toward 5.5% of GDP, the countries of Central Europe and the Balkans are converging more toward the baseline level of 3.5%. The study identifies the fiscal limits of this transformation and structural differences in the implementation of the new alliance goals.).

The paper aims at distinguishing the assumptions and component parts of financial system sustainability formation. Partly, sustainability of financial system can be expressed through the functions of financial system. Three financial subsystems are distinguished in the research: public finance, business finance and personal finance. The sustainable and efficient operation of each subsystem contributes to the sustainability of financial system as a whole. Also, sustainability of each of the subsystem can be measured by different indicators. In order to determine the strength of impact of various financial functions to the financial system such indicators as capital investments into financial and insurance activities, financial and insurance activities’ value added, as well as value of production and purchase of goods and services by the financial companies is analysed. Finally, the scheme of financial system sustainability is presented. The key conclusion of the research states that the synergistic effect of sustainable development of three fields of finance influences the sustainable development of the whole financial system and even can spread its impact beyond the limits of financial system.

Tax incentive is optional but highly important element of taxation, used in order to achieve different goals. On the one hand, tax incentives form tax expenditures and thus reduce budget revenue; on the other hand, they influence behavior of persons and businesses and may have positive or negative social and economic effect. This article analyzes the incentives of personal taxation in Lithuania and their social, economic and fiscal impact. The study was conducted using the method of descriptive and factor analysis. The results revealed economic impact of tax incentives applicable in Lithuania.