Causes and Effects of Budget Imbalance in Poland and Selected Countries in the World

The budget deficit is almost a common economic phenomenon occurring in many countries of the world at various levels of development. An excessive budget deficit can lead to public debt in the medium and long run, which can become an important factor negatively affecting socio-economic development. The main reason for the existence of public debt is the accumulation of the budget deficit from previous financial years. Increasing the amount of budget expenditure above the level of budget revenues leads to serious difficulties in financing compulsory public tasks, which in principle are assigned to public administration at various levels of competence. This means that in market economy conditions, relatively large amounts of public expenditure around the world due to the liberalization of tax systems, even while maintaining high efficiency of the economy, may cause difficulties in generating current budget revenues on accepted level. In this respect, the situation in the world is varied, but problems with the financing of public tasks are more or less visible. The purpose of this article is to indicate the significance of the problem and try to find solutions leading to a reduction of the budget deficit at the national level in Poland and selected countries. It is therefore about seeking solutions that would refer to the principle of optimal taxation, while maintaining a reasonable tax burden in order to create conditions for the efficient financing of public tasks and would reduce the risk of budget deficit and public debt.