Politics and Citizenship on the Eastern Baltic Seaboard: The Structuring of Democratic Politics from North-West Russia to Poland

Markiewicz on the fiscal situation .It is a valuable source of information and analysis. They note that the tax system has failed to satisfy the state’s need for revenues and it dose not fulfill its regulatory and stimulatory functions. The existing tax system distorts the efficient allocation of resources, it does not foster savings and investment and consequently economic growth. It is not fair, not stable, not simple, not neutral, and not transparent, yet it has high compliance and administration costs. This chapter also contain some useful statistical data: for example (p.127) in 1992 the consolidated budget deficit was 29.3% of GDP, in 1993 9.7% of GDP and in 1994 8.2% of GDP.