for the fulfilment of short-term objectives of the executive power. As a result, the
whole social insurance system is destabilised (see Case materials, vol. 9, p. 188).
31.1.2. It can be inferred from the Case materials that one of the reasons of such a big
deficit in the social insurance budget was inconsiderate definition of parenting benefit
as a type of social insurance. In 2008, approximately 66.7 million lats were spent for
the disbursement of this benefit, and there were plans to spend approximately 82.9
million lats for this purpose in 2009 (see Case materials, vol. 9, p. 195).
Until 1 January 2008, this benefit was defined as a type of social allowance – childcare
benefit, and it was disbursed from the basic budget of the State. Under the then
effective legislation, the amount of the benefit was limited, i.e. it could not exceed 392
lats per month. The Constitutional Court adjudicated such a regulation as conforming
to the principle of legal equality ensuing from Article 91 of the Constitution (see the
Constitutional Court Judgment in Case No. 2006-10-03 passed on 11 December
2006).
In order to change the procedure for the disbursement of childcare benefit that was
effective until 1 January 2008, the Cabinet of Ministers submitted a draft law
Amendments to the Law on State Social Insurance to the Saeima on 8 October 2007.
The draft law was developed on the basis of the Prime Minister’s Resolution No. 1111/152 of 20 September 2007. The Resolution commissioned the Ministry of Welfare,
in cooperation with the Ministry of Justice and the Ministry of Finance, to prepare
amendments concerning the optimisation of the childcare benefit system to the
relevant drafts of legal acts and submit for review until 24 September 2007 for the
Cabinet of Ministers’ meeting of 25 September (see the Prime Minister’s Resolution
No. 111-1/152 of 20 September 2007, Case materials, vol. 10, p. 81). The draft law
was declared as urgent and was adopted without debates in both the first and the
second readings (see transcript of the Saeima’s meeting of 24 October 2007
http://www.saeima.lv/steno/Saeima9/071024/st071024.htm and transcript of the
Saeima’s
meeting
of
8
November
2007
http://www.saeima.lv/steno/Saeima9/071108/st071108.htm, accessed on 2 December
2009).
With the adoption of this law, a new type of State social insurance – parenting
insurance – was introduced in the Law on State Social Insurance. The Draft Law
60
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