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Latvian social system is ahead of serious financial problems. The article analyses causes and beginnings of the crisis, in the context of the 1st budget level of social systems in relation to the national budget, as well as the negative impact of the state budget on the social security budget for the financial future. The government also discussed the measures taken by the social system of financial regulation and their impact on society's social environment. Recommendations have been developeddoi:10.17770/lner2010vol1.2.1769 fatcat:u7pvq2l2qba3ziydkv2k2qoc34