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Barriers for effectiveness of fiscal policy: the case of Poland

Author

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  • Alina Klonowska

    (Cracow University of Economics)

Abstract

Motivation: It is commonly known that the public authorities responsible for the implementation of fiscal policy aim to achieve social and economic objectives. Nevertheless, as in the case of the private sector, there are factors that can limit the achievement of these goals. Retrospective analysis of the policy conducted by fiscal authorities in Poland, in the period prior to and post-crisis, proves the existence of numerous reasons that determine the particular effectiveness of the policy. This in turn leads to many interesting evaluative judgments. The essence and main objectives of fiscal policy will be defined on the basis of the literature review. Furthermore, an attempt will be made to answer the question what effective fiscal policy means, what factors determine it and what measures can evaluate this effectiveness. Empirical part of the paper will present shaping of the macroeconomic indicators. Further, it will concern the recognition of factors that affect the achievement of the objectives on the basis of statistical data analysis. The summary will include assessment of the rationality and verification of the validity of fiscal decisions taken by the authorities. Aim: The main goal of the article is to recognize and assess the factors affecting the achievement of the objectives of fiscal policy in Poland. This aim is accompanied by the following hypothesis; adopted system solutions by the authorities make it impossible to conduct effective fiscal policy in Poland. Results: The anticipated results will be visible in the form of highlighting the factors which were characterized by both the negative and positive impact on the achievement of the objectives of fiscal policy in Poland. It should consequently contribute to considering possible system changes in the future.

Suggested Citation

  • Alina Klonowska, 2019. "Barriers for effectiveness of fiscal policy: the case of Poland," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(1), pages 29-45, March.
    • Handle: RePEc:cpn:umkeip:v:18:y:2019:i:1:p:29-45
    DOI: 10.12775/EiP.2019.003
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    References listed on IDEAS

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    More about this item

    Keywords

    fiscal policy; public revenues; public expenditures; sustainability of public finance;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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