Transfer payments hold on state’s competitive ability

The existing direct governmental influences on any state’s economics are not only regulating the fluent economical growth, stable unemployment rate, but also affect the business competitive ability. The discussion between supporters of high government’s influence towards the state’s economics and opponents of this opinion who say that the economics of open market should stabilize and grow without any interruptions from government’s side made the need to overview the opinions about one of the ways that government regulate the economics, which is transfer payments. The main goal of the article is to find out if there is any effect or hold on state’s competitive ability made by transfer payments. The objectives of the article are to analyze the opinions of various foreign authors about transfer payments; to review different authors’ publications which analyse transfer payments influence towards various fields of state economics and on the ground of reviewed articles evaluate nowadays Lithuanian Republic’s stated by law graces and grants appearing as transfer payments from the state’s budget effect towards state’s competitive ability.