The Lithuanian Free Market Institute has examined draft amendments to the Law on Benefits for Children aimed at increasing the universal monthly childcare benefit from 30.02 eur to 50.16 eur and fixing an additional benefit of 20.14 eur if the monthly income per family member is below the state-supported income level. In its position note, the Lithuanian Free Market Institute argues that:
- universal childcare benefits are not in line with the principles of social support as benefits are paid without regard to the family’s income;
- higher benefits are unlikely to increase birth rates;
- payment administration is inefficient and expensive as compared to previously applicable tax-exempt income thresholds for families with children.
Read the full position paper (in Lithuanian) here.
