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1 Optimum. Studia Ekonomiczne

1 2008

1 Dziemianowicz R.

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EXCESSIVE FISCALITY: A BARRIER OR STIMULATING FACTOR IN PUBLIC SECTOR (Nadmierny fiskalizm: bariera czy stymulator funkcjonowania sektora publicznego?)

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Dziemianowicz R.

Optimum. Studia Ekonomiczne

2008

nr 4(40)

135-152

In the article, an attempt has been made to find a relationship between an excessive growth of the public sector and excessive fiscality. The conducted research provides new insights into the problem. It shows that when fiscal potential of the State is exceeded this does not lead to an increase in revenue that covers the expenses of the public sector but just the opposite - to a dramatic drop in revenue what, consequently, affects not only the quantity but also quality of goods and services provided by the State. At the same time, it was stated that the condition of the public finance sector is indirectly reflected by the size of the so-called grey area within economy, whose increase, due to negative consequences for the entire economy but also for the public finance sector itself should make us give some thought to both the level of incidence and also to public expenses.