Budget of the state social insurance fund of the republic of lithuania and its relation to the state budget of the republic of lithuania

In this master’s thesis the budget of the State Social Insurance Fund of the Republic of Lithuania is examined in comparison with the state budget of the Republic of Lithuania. The analyses of the process, income and incurred expenditure of the State Social Insurance Fund budget are included. Main similarities and differences of both budgets are analysed and controversy for merging discussed. In the first part of this thesis the concept of the budget in the sense of public finance law and tax law is analysed and the concept of consolidated budget examined. Moreover, the system of state extra-budgetary funds established in Lithuania is presented, identifying the legal bases and purpose of the establishment of each fund. The criteria to be met by the state extra-budgetary fund are specified. In the second part of this report social development and its importance as the base for the emergence of state social insurance is discussed. While analysing the social insurance models established in European countries, the prevailing State Social Insurance model in Lithuania is determined. Also, the State Social Insurance Management System and participants are presented. In the third part of this thesis the process of the State Social Insurance budget is examined, distinguishing the stages of the budget process. The revenues of the State Social Insurance budget and the change of contribution rates before and after the entry into the force of the Tax Reform (in the period of 2014-2020) are analysed. The budget outlay of the fund in the period 2018-2020 are also studied. In the fourth part of this thesis the relationship between social insurance contributions and taxes, and social insurance benefits and insurance benefits is classified. The correlation of the above stated concept is also discussed. Furthermore, the reasons and possibilities for establishing extra-budgetary funds are discussed and the State Social Insurance Fund and the State Budget are compared. A point of view is presented on the prospects of merging these funds