Recent developments of public expenditure on social protection in Estonia, Latvia and Lithuania

Abstract

The magic of the fast economic and social prosperity after the accession into European Union (EU27) in three new EU member countries in Baltic region – Estonia, Latvia and Lithuania was shaken at the end of 2008 due to world financial economic crisis. The reliability of financial and economic systems as well as that of social protection was tested under severe conditions. The level of general governmental expenditures in all three Baltic countries remains one of the lowest among EU27 countries and it ranges from 37 to 39% of their respective GDP, while in EU27 it reaches 49% of EU27 GDP. The general governmental expenditure on social protection is also relatively more modest in all these three countries and accounts for some 14% of their GDP, while these expenditures in EU27 – 19% of EU27 GDP.