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This paper discusses guidelines for implementation of art. 107–109 of the Treaty on the Functioning of the European Union, from the perspective of tax aid. This should lead to verification of the thesis that due to economic recovery plan – in response to the effects of the financial and economic crisis – implemented at EU level, the support of the public authorities in the form of tax subsidies has become the most broadly used form of State aid due to the value among all the forms of aid granted by member states of the European Union. The adoption of such a thesis raises the question of the influence of state aid on the size of the general government sector debt in the EU member states, which have provided tax aid. This analysis was carried out based on the linear regression model. The response variable (dependent variable Y) is the size of the general government sector debt, and explanatory variable (independent variable X) is the expenditure on state aid.

Tax Subsidies as a Form of State Aid and General Government Sector Debt