EVOLUTION OF PUBLIC FINANCE SECTOR’S INCOME AND EXPENDITURE BETWEEN 2004 AND 2011

Abstract

The aim of the article is to present the evolution of the structure of the public finance sector’s
income and expenditure between 2004 and 2011 and an attempt to find and evaluate the
determinants of those changes.
The author verifies the hypothesis of a systematic increase in significance of the state budget
and appropriated funds as instruments of the redistribution of wealth occurring together with the
processes of centralisation of income in government sub-sector and decentralisation of
expenditures (due to increased transfers to the local government sub-sector). In order to verify this
hypothesis data concerning income and expenditures of the public finance sector between 2004
and 2011 has been standardised, aggregated and analysed in the most crucial cross-sections.
Issues raised in the article are extremely important in the context of remedial actions and an
ongoing discussion in economic circles on the role of the expenditure rules in public finance
sector. That being so, the report brings high value to the financial sciences and economics.