EN
The main aim of the article is theoretical and empirical analysis of the causal relationship between the budget balance and the current account balance in the Baltic countries (Latvia, Lithuania and Estonia) in the period 1999-2010. In the paper are used methods based on the literature study of international economics and international fi nance as well as econometric methods (Vector Autoregressive Model - VAR). Th e results of investigation clearly point at the existence of negative relationship between fi scal and current account balances in the analyzed countries. At the same time it was revealed stronger impact of the current account balance on the government balance than the impact of the government balance on the current account balance in Latvia, Lithuania and Estonia.(original abstract)