This paper has aimed to consider how government expenditure contributes to economic growth by focusing on both the level and composition of government spending, in connection to the dynamics of GDP per capita growth. The investigation covers the period from 1997 to 2017. The authors have applied total expenditure approach analyzing interrelationships between government expenditure and economic growth and division approach examining and comparing the distributions of government expenditure in the selected European Union countries. The authors have applied descriptive statistics, the Pearson’s correlation, intensity rate of structural changes and Finger-Kreinin indicator. The findings have suggested the following: 1) there is no evidence on the relationship between general government expenditure and economic development in the European Union countries; 2) the countries with a greater proportion of productive spending, such as Cyprus, Greece, Lithuania, Hungary, Estonia, Slovakia have a low GDP per capita indicator. Economically strong countries, such as Denmark, France and Sweden have relatively low level of productive expenditure; 3) economically stronger countries have more stable compositions of government expenditure than economically weaker ones; 4) the countries with a similar real GDP per capita have been characterized by more similar government spending structures. As the economic gap between countries grows, divergence in allocation of government spending increases. The findings of this research could provide important guideline for the managing of government expenditure in the European Union countries. Moreover, it can serve as a guideline to a public budget management in the countries under consideration.
Scientific literature particularly emphasizes the threats to the tax system emerging from tax incentives, as well as the need to control them in order to get the desired effect in society and to ensure the sustainability of public finance. Nevertheless, it can be noticed that relatively weak tax incentives control mechanisms exist in practice, in comparison with control programs of government spending. Only a small number of countries use tax incentives assessment models to justify political decisions. Evaluating Lithuanian practice and comparing it with other countries, it is obvious that Lithuanian government has no legal mechanism for evaluating the necessity and efficiency of tax incentives. Due to this reason, the tax incentives assessment model is necessary in order to evaluate Lithuanian personal income taxation and create competitive and sustainable tax system. The aim of the paper is to form the assessment model for income tax of individuals incentives, based on theory and practice of foreign countries and international organizations, and apply it to evaluate the impact of personal income tax incentives on public finance in Lithuania. As a primary task, the authors conducted an analysis of a number of theoretical and practical tax incentives assessment models. Second, personal income tax incentives are analyzed from different perspectives – as tax benefit, as tax expenditure, and as fiscal measure. Finally, the authors suggest the complex and multifaceted model that can be used to evaluate the impact of income tax of individuals incentives on public finance and their sustainability. It is believed that the results obtained due to the study carried out for the purpose of the present paper will help to shape favorable personal income taxation system for sustainable development process. The study was conducted using the methods of academic literature and statistical data analysis, meta-analysis, qualitative content analysis and correlation-regression analysis.
With the changing global security situation, increase in external threats or emergence of new ones (cyberattacks, non-conventional warfare models, etc.), countries must feel concern regarding consolidation of their security. In this regard, both the Republic of Lithuania and Ukraine are taking measures to enhance and expand their military forces. One of the means to fortify military forces is attracting citizens to serve in the civilian national defence service. Authors of the article employ a comparative aspect to analyse the need for statutory servants serving in the civilian national defence service, as well as reveal the number and type of professionals to be required by the national defence system and explore benefits provided by such statutory servants as well as their purpose in the army. Additionally, in the article authors reveal administrational-legal status of civilian national defence services in both the Republic of Lithuania and Ukraine, its place in the system of other militarised or civil public administration institutions. Comparative aspect is also used to analyse administrative legal status of statutory servants of civilian national defence service, peculiarities of admission of statutory servants to the national defence system and their service therein, as well as possibilities for motivation and stimulation of citizens to exercise service in the civilian national defence service. Therefore, the article aims to answer the question of what could motivate citizens to carry out service in the civilian national defence service, what incentives (needs, interests, values, stimulus, realisation of importance of certain matters, remuneration, etc.) would result in motivation (attitude and interest in) to serve in the Lithuanian Armed Forces and to participate in international operations.