Stabilisation and changes in the public finance system

Abstract

The subject of the deliberations is the public finance system, which is treated as an organised system consisting of a set of rules constituting a whole. The paper aims to present stability of the public finance system. It is emphasised that it cannot be equated with the invariability of its elements. This has led to a formulation of a hypothesis that changes that are made do not have to be contrary to the stability of the public finance system. Stability is characterised by striving for an arrangement that allows, in the long run, predicting the form it will take. It is assumed that this requires changes that are influenced by many factors. They are entangled with legal, organisational and instrumental arrangements. Public authorities make decisions on changes basing not only on financial premises, but also on those that secure their interests (political premises) of staying in power. In conclusion, seven factors that influence the scope of public finance are identified and discussed. Against this background, the factors determining changes are presented, distinguishing between monetary and non-monetary factors. In conclusion, it is stated that the changes introduced must be coordinated with each other.