Poland's fiscal policy for 2019-2023

Abstract

PURPOSE: This article analyses Poland's fiscal policy from 2019 to 2023, focusing on the domestic adjustments and challenges it faced due to internal and external economic conditions.

DESIGN/METHODOLOGY/APPROACH: The research employs an analytical approach predicated on macroeconomic data from 2019 to 2023. To ascertain trends and outcomes, Poland's fiscal policies, budget expenditures, and public financial sector deficits were thoroughly examined.

FINDINGS: The findings indicate a significant rise in the public financial sector deficit, primarily due to increased budgetary expenditures. This situation led to the initiation of the Excessive Deficit Procedure by the European Union, which was lifted in mid-2015. Despite the conservative monetary policy of the National Bank of Poland, fiscal policy took precedence. Ambitious social programs necessitated reforms and potential tax increases, highlighting the need to overhaul the outdated tax system.

PRACTICAL IMPLICATIONS: The study’s findings can provide policymakers with crucial information regarding the fiscal reforms and adjustments necessary to preserve financial equilibrium and decrease dependence on foreign savings.

ORIGINALITY/VALUE: The article contributes to the understanding of Poland's fiscal policy adjustments in response to both internal and external economic challenges, emphasizing the importance of coordinated fiscal and monetary policies.