Open AccessFiscal Rules and Fiscal Illusions – The Experience of Poland
Author(s) -
Przemysław Panfil
Publication year - 2021
Publication title -
financial law review
Language(s) - English
Resource type - Journals
ISSN - 2299-6834
DOI - 10.4467/22996834flr.21.030.15397
Subject(s) - stability and growth pact , order (exchange) , balance (ability) , fiscal sustainability , government (linguistics) , fiscal union , fiscal policy , presentation (obstetrics) , fiscal federalism , macroeconomics , economics , sustainability , institution , economic system , economic policy , public economics , political science , european union , finance , decentralization , member states , law , market economy , medicine , ecology , linguistics , philosophy , radiology , biology , physical medicine and rehabilitation
The aim of this article is to provide the synthetic presentation of over twenty years of Poland’s experience in establishing and obeying the system of fiscal rules. This experience depicts the scale of problems entailed by public authorities’ low determination as regards observance of constraints imposed on them. Therefore, it is necessary to substantially reinforce the budgetary frameworks in Poland with the use of the best European models. Firstly, the ESA 2010 standards should be fully implemented into the Polish legal order. Secondly, the Polish system of fiscal rules should be complemented with the budget balance rule, which would make it easier to achieve and maintain a medium-term budgetary objective defined by the EU regulations. Thirdly, a fiscal institution should be established, which would allow for constant and independent of the government monitoring of the observance of fiscal rules. Such institutional changes would make it possible to constrain the discretionary nature of the fiscal policy and, consequently, would increase Poland’s fiscal sustainability in the medium and long term. The basic research methods used in this paper are dogmatic analysis and comparative legal analysis.