The effects of instability in the financial sector as well as the numerous examples of granting state aid to banking and financial institutions have prompted the governments of many countries and public institutions, worldwide, to take extraordinary measures using customized instruments which aimed at limiting the effects of the economic crisis. Support packages and stabilization measures have contributed to an increase in budget deficits and the public debt in many European countries. In addition, an increase in government expenditure with limited budget revenues caused by the economic slowdown, have created a need to take more radical actions in the sphere of public finance. Changes, taking place in the public finance system, reflect the processes, events and situations occurring in the country's economy and its environment.
Poland is one of the few European Union countries that were not greatly affected by the global financial crisis. Strong macroeconomic foundations, a restrictive supervisory policy the sovereign possibility of forming a national monetary policy and good decisions in the area of fiscal policy contributed to obtaining positive effects in the economic and social spheres. The principles of market economy, in force in Poland for 27 years (since 1989), became an impetus for dynamic social and economic development as well as a number of private and public initiatives that have contributed to the socioeconomic development of the country and improvement of the living standards of its citizens. The fiscal policy and state of public finances were of great importance in this regard. The state of public finances to a large extent depends on the setting and implementation of the fiscal policy.
Today's public finance is not limited to merely studying the economy of public funds, but it explains the basic economic and social phenomena associated with the management of public funds. An important element of effective management of public funds is to identify the fundamental cause effect relations occurring between the collection and spending of public funds as well as the economic, social and political phenomena that take place in a free market economy. In stable macroeconomic conditions, the decisions of the governments of most EU countries move towards increasingly tightening fiscal discipline, both at the national level through various cost saving initiatives, and through the implementation of new regulations and principles of public funds management at the national and EU levels. However, during the financial and economic crisis, new tools, methods and ways to boost economic growth and maintain a balance in the economic system must be sought. Therefore, the actions of governments and public institutions, and the set of instruments used to shape public policy, take on extreme importance. One of them is a proposal to introduce an active fiscal policy and the helicopter money programme. In the new legal, financial and organizational conditions, an essential element is to make changes in the public finance sector so as to adjust the feasibility of expenditure and revenue at a level that is adequate to the current state of the economy.
This monograph entitled Public finance in Poland is a compendium of knowledge about the rules, forms and specifics of functioning of the public sector in Poland. It presents mainly the adopted strategies in terms of fiscal policy and the resulting effects of activities in the public finance sector, which are reflected in the state of budget revenues and expenditures as well as in the level of budget deficit and public debt in Poland.
The publication consists of five chapters which present the basics of financial management of the country and the importance of the financial system in its development. One of the essential elements is the public sector, which includes central institutions, local government units and the public insurance sector. Chapter 1 is an introduction to deliberations about identification of the role, place and importance of public finance in the economy and the financial system of the country. Special attention was paid to the need for coordination of fiscal and monetary policy as the basis for conducting the financial policy in the country. Against the background of macroeconomic considerations, it describes the general characteristics and the state of public finances. The second chapter is devoted to issues of development, implementation and control of the state budget. It presents the basic sources of budget revenue and expenditure, as well as the budget deficit and public debt. The content of the third chapter is presented in a similar convention and is devoted to the issues of specificity and effects of the activities of local government units in Poland. The fourth chapter presents the principles of organization, components, and identification of sources of financing the public social insurance system in Poland. The last part of the study discusses the nature and direction of the fiscal policy in Poland. This monograph is a proposal for a textbook addressed to a wide audience, including mainly students of economics as well as economists and business practitioners, employees of tax administration, employees of local government and social security units.
Public finance is also a discipline of economics, which reflects the adopted strategies and decisions taken by the state, local government units, entities of the social security sector and other entities of the public finance sector. This publication presents the current state and determinants of changes in the public finance sector in Poland, and also reflects the direction and scope of new initiatives and activities of public nature. The intention of the authors of all the chapters was to present the observed phenomena and events that have taken place in Poland in recent years, a period that is characterized by strong turbulence in the global financial system and global economy. Statistical data illustrates the changes and state of public finances in Poland in the years 2007-2014 and some data available on 2015.
This publication was created as part of the works conducted during the 20142016 research project entitled: "The mechanisms of financial assistance under the conditions of instability of the financial system" financed by the National Science Centre DEC-2013/09/B/HS4/03610.
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CHAPTER 1. Financial aspects of functioning of a state
1.1. Principles of functioning and organization of a financial system
1.1.1. Macroeconomic conditions of development and dependencies in a national economy
1.1.2. The concept and principles of functioning of a financial system
1.1.3. Market and public financial system
1.2. Functioning premises and components of the financial system in Poland
1.2.1. State economic and financial policy
1.2.2. Basics of financial policy in a market economy
1.2.2.1. Objectives and instruments of monetary policy
1.2.2.2. The concept and function of fiscal policy as well as stability of the public financial system
1.3. Public finance sector
1.3.1. Units and institutions of the public finance sector
1.3.2. Rules for the collection and distribution of public funds
1.4. Balance of the public finance sector
CHAPTER 2. State budget system in Poland
2.1. The state budget as a public fund and financial plan
2.2. Rules and procedure for the implementation of the state budget
2.3. The system of collecting budget revenues
2.4. The tax system
2.5. State budget expenditure
2.6. Budget planning
CHAPTER 3. Finance of local government units
3.1. The basics of financial management of LGUs
3.2. Budget of LGUs
3.3. External sources of financing tasks of LGUs
3.4. Result of LGUs' budgets
3.5. Municipal debt in the financial management of LGUs
CHAPTER 4. Social security system - the essence and sources of financing
4.1. Social security - system comments
4.2. Public social funds - the idea, organization and functioning
4.3. Public social funds in Poland
4.3.1. National Health Fund
4.3.2. Public funds on employment and unemployment
4.3.2.1.Labour Fund
4.3.2.2. Guaranteed Employee Benefits Fund
4.3.2.3. State Fund for Rehabilitation of Disabled Persons
4.3.3. Social Insurance Fund
4.3.3.1. Sub-funds of the Social Insurance Fund
4.3.3.2. Old-age pension security funds
4.3.4. Financing social assistance
4.3.5. Funds for the social security of farmers
4.4. The problem of shortages of funds in the social security system
CHAPTER 5. Fiscal policy as an element of maintaining the stability of the public finance sector in Poland
5.1. Measures of sustainability of public finance
5.2. The concept and the scale of general government deficit
5.3. The essence and dilemmas of public debt management
5.3. Economic limits set for dangerous levels of public debt
5.4. Public debt in Poland
5.5. Fiscal rules as a form of preserving the financial stability of the public finance sector
List of references
Opis
Wstęp
The effects of instability in the financial sector as well as the numerous examples of granting state aid to banking and financial institutions have prompted the governments of many countries and public institutions, worldwide, to take extraordinary measures using customized instruments which aimed at limiting the effects of the economic crisis. Support packages and stabilization measures have contributed to an increase in budget deficits and the public debt in many European countries. In addition, an increase in government expenditure with limited budget revenues caused by the economic slowdown, have created a need to take more radical actions in the sphere of public finance. Changes, taking place in the public finance system, reflect the processes, events and situations occurring in the country's economy and its environment.
Poland is one of the few European Union countries that were not greatly affected by the global financial crisis. Strong macroeconomic foundations, a restrictive supervisory policy the sovereign possibility of forming a national monetary policy and good decisions in the area of fiscal policy contributed to obtaining positive effects in the economic and social spheres. The principles of market economy, in force in Poland for 27 years (since 1989), became an impetus for dynamic social and economic development as well as a number of private and public initiatives that have contributed to the socioeconomic development of the country and improvement of the living standards of its citizens. The fiscal policy and state of public finances were of great importance in this regard. The state of public finances to a large extent depends on the setting and implementation of the fiscal policy.
Today's public finance is not limited to merely studying the economy of public funds, but it explains the basic economic and social phenomena associated with the management of public funds. An important element of effective management of public funds is to identify the fundamental cause effect relations occurring between the collection and spending of public funds as well as the economic, social and political phenomena that take place in a free market economy. In stable macroeconomic conditions, the decisions of the governments of most EU countries move towards increasingly tightening fiscal discipline, both at the national level through various cost saving initiatives, and through the implementation of new regulations and principles of public funds management at the national and EU levels. However, during the financial and economic crisis, new tools, methods and ways to boost economic growth and maintain a balance in the economic system must be sought. Therefore, the actions of governments and public institutions, and the set of instruments used to shape public policy, take on extreme importance. One of them is a proposal to introduce an active fiscal policy and the helicopter money programme. In the new legal, financial and organizational conditions, an essential element is to make changes in the public finance sector so as to adjust the feasibility of expenditure and revenue at a level that is adequate to the current state of the economy.
This monograph entitled Public finance in Poland is a compendium of knowledge about the rules, forms and specifics of functioning of the public sector in Poland. It presents mainly the adopted strategies in terms of fiscal policy and the resulting effects of activities in the public finance sector, which are reflected in the state of budget revenues and expenditures as well as in the level of budget deficit and public debt in Poland.
The publication consists of five chapters which present the basics of financial management of the country and the importance of the financial system in its development. One of the essential elements is the public sector, which includes central institutions, local government units and the public insurance sector. Chapter 1 is an introduction to deliberations about identification of the role, place and importance of public finance in the economy and the financial system of the country. Special attention was paid to the need for coordination of fiscal and monetary policy as the basis for conducting the financial policy in the country. Against the background of macroeconomic considerations, it describes the general characteristics and the state of public finances. The second chapter is devoted to issues of development, implementation and control of the state budget. It presents the basic sources of budget revenue and expenditure, as well as the budget deficit and public debt. The content of the third chapter is presented in a similar convention and is devoted to the issues of specificity and effects of the activities of local government units in Poland. The fourth chapter presents the principles of organization, components, and identification of sources of financing the public social insurance system in Poland. The last part of the study discusses the nature and direction of the fiscal policy in Poland. This monograph is a proposal for a textbook addressed to a wide audience, including mainly students of economics as well as economists and business practitioners, employees of tax administration, employees of local government and social security units.
Public finance is also a discipline of economics, which reflects the adopted strategies and decisions taken by the state, local government units, entities of the social security sector and other entities of the public finance sector. This publication presents the current state and determinants of changes in the public finance sector in Poland, and also reflects the direction and scope of new initiatives and activities of public nature. The intention of the authors of all the chapters was to present the observed phenomena and events that have taken place in Poland in recent years, a period that is characterized by strong turbulence in the global financial system and global economy. Statistical data illustrates the changes and state of public finances in Poland in the years 2007-2014 and some data available on 2015.
This publication was created as part of the works conducted during the 20142016 research project entitled: "The mechanisms of financial assistance under the conditions of instability of the financial system" financed by the National Science Centre DEC-2013/09/B/HS4/03610.
Spis treści
CHAPTER 1. Financial aspects of functioning of a state
1.1. Principles of functioning and organization of a financial system
1.1.1. Macroeconomic conditions of development and dependencies in a national economy
1.1.2. The concept and principles of functioning of a financial system
1.1.3. Market and public financial system
1.2. Functioning premises and components of the financial system in Poland
1.2.1. State economic and financial policy
1.2.2. Basics of financial policy in a market economy
1.2.2.1. Objectives and instruments of monetary policy
1.2.2.2. The concept and function of fiscal policy as well as stability of the public financial system
1.3. Public finance sector
1.3.1. Units and institutions of the public finance sector
1.3.2. Rules for the collection and distribution of public funds
1.4. Balance of the public finance sector
CHAPTER 2. State budget system in Poland
2.1. The state budget as a public fund and financial plan
2.2. Rules and procedure for the implementation of the state budget
2.3. The system of collecting budget revenues
2.4. The tax system
2.5. State budget expenditure
2.6. Budget planning
CHAPTER 3. Finance of local government units
3.1. The basics of financial management of LGUs
3.2. Budget of LGUs
3.3. External sources of financing tasks of LGUs
3.4. Result of LGUs' budgets
3.5. Municipal debt in the financial management of LGUs
CHAPTER 4. Social security system - the essence and sources of financing
4.1. Social security - system comments
4.2. Public social funds - the idea, organization and functioning
4.3. Public social funds in Poland
4.3.1. National Health Fund
4.3.2. Public funds on employment and unemployment
4.3.2.1.Labour Fund
4.3.2.2. Guaranteed Employee Benefits Fund
4.3.2.3. State Fund for Rehabilitation of Disabled Persons
4.3.3. Social Insurance Fund
4.3.3.1. Sub-funds of the Social Insurance Fund
4.3.3.2. Old-age pension security funds
4.3.4. Financing social assistance
4.3.5. Funds for the social security of farmers
4.4. The problem of shortages of funds in the social security system
CHAPTER 5. Fiscal policy as an element of maintaining the stability of the public finance sector in Poland
5.1. Measures of sustainability of public finance
5.2. The concept and the scale of general government deficit
5.3. The essence and dilemmas of public debt management
5.3. Economic limits set for dangerous levels of public debt
5.4. Public debt in Poland
5.5. Fiscal rules as a form of preserving the financial stability of the public finance sector
List of references
Opinie
The effects of instability in the financial sector as well as the numerous examples of granting state aid to banking and financial institutions have prompted the governments of many countries and public institutions, worldwide, to take extraordinary measures using customized instruments which aimed at limiting the effects of the economic crisis. Support packages and stabilization measures have contributed to an increase in budget deficits and the public debt in many European countries. In addition, an increase in government expenditure with limited budget revenues caused by the economic slowdown, have created a need to take more radical actions in the sphere of public finance. Changes, taking place in the public finance system, reflect the processes, events and situations occurring in the country's economy and its environment.
Poland is one of the few European Union countries that were not greatly affected by the global financial crisis. Strong macroeconomic foundations, a restrictive supervisory policy the sovereign possibility of forming a national monetary policy and good decisions in the area of fiscal policy contributed to obtaining positive effects in the economic and social spheres. The principles of market economy, in force in Poland for 27 years (since 1989), became an impetus for dynamic social and economic development as well as a number of private and public initiatives that have contributed to the socioeconomic development of the country and improvement of the living standards of its citizens. The fiscal policy and state of public finances were of great importance in this regard. The state of public finances to a large extent depends on the setting and implementation of the fiscal policy.
Today's public finance is not limited to merely studying the economy of public funds, but it explains the basic economic and social phenomena associated with the management of public funds. An important element of effective management of public funds is to identify the fundamental cause effect relations occurring between the collection and spending of public funds as well as the economic, social and political phenomena that take place in a free market economy. In stable macroeconomic conditions, the decisions of the governments of most EU countries move towards increasingly tightening fiscal discipline, both at the national level through various cost saving initiatives, and through the implementation of new regulations and principles of public funds management at the national and EU levels. However, during the financial and economic crisis, new tools, methods and ways to boost economic growth and maintain a balance in the economic system must be sought. Therefore, the actions of governments and public institutions, and the set of instruments used to shape public policy, take on extreme importance. One of them is a proposal to introduce an active fiscal policy and the helicopter money programme. In the new legal, financial and organizational conditions, an essential element is to make changes in the public finance sector so as to adjust the feasibility of expenditure and revenue at a level that is adequate to the current state of the economy.
This monograph entitled Public finance in Poland is a compendium of knowledge about the rules, forms and specifics of functioning of the public sector in Poland. It presents mainly the adopted strategies in terms of fiscal policy and the resulting effects of activities in the public finance sector, which are reflected in the state of budget revenues and expenditures as well as in the level of budget deficit and public debt in Poland.
The publication consists of five chapters which present the basics of financial management of the country and the importance of the financial system in its development. One of the essential elements is the public sector, which includes central institutions, local government units and the public insurance sector. Chapter 1 is an introduction to deliberations about identification of the role, place and importance of public finance in the economy and the financial system of the country. Special attention was paid to the need for coordination of fiscal and monetary policy as the basis for conducting the financial policy in the country. Against the background of macroeconomic considerations, it describes the general characteristics and the state of public finances. The second chapter is devoted to issues of development, implementation and control of the state budget. It presents the basic sources of budget revenue and expenditure, as well as the budget deficit and public debt. The content of the third chapter is presented in a similar convention and is devoted to the issues of specificity and effects of the activities of local government units in Poland. The fourth chapter presents the principles of organization, components, and identification of sources of financing the public social insurance system in Poland. The last part of the study discusses the nature and direction of the fiscal policy in Poland. This monograph is a proposal for a textbook addressed to a wide audience, including mainly students of economics as well as economists and business practitioners, employees of tax administration, employees of local government and social security units.
Public finance is also a discipline of economics, which reflects the adopted strategies and decisions taken by the state, local government units, entities of the social security sector and other entities of the public finance sector. This publication presents the current state and determinants of changes in the public finance sector in Poland, and also reflects the direction and scope of new initiatives and activities of public nature. The intention of the authors of all the chapters was to present the observed phenomena and events that have taken place in Poland in recent years, a period that is characterized by strong turbulence in the global financial system and global economy. Statistical data illustrates the changes and state of public finances in Poland in the years 2007-2014 and some data available on 2015.
This publication was created as part of the works conducted during the 20142016 research project entitled: "The mechanisms of financial assistance under the conditions of instability of the financial system" financed by the National Science Centre DEC-2013/09/B/HS4/03610.
CHAPTER 1. Financial aspects of functioning of a state
1.1. Principles of functioning and organization of a financial system
1.1.1. Macroeconomic conditions of development and dependencies in a national economy
1.1.2. The concept and principles of functioning of a financial system
1.1.3. Market and public financial system
1.2. Functioning premises and components of the financial system in Poland
1.2.1. State economic and financial policy
1.2.2. Basics of financial policy in a market economy
1.2.2.1. Objectives and instruments of monetary policy
1.2.2.2. The concept and function of fiscal policy as well as stability of the public financial system
1.3. Public finance sector
1.3.1. Units and institutions of the public finance sector
1.3.2. Rules for the collection and distribution of public funds
1.4. Balance of the public finance sector
CHAPTER 2. State budget system in Poland
2.1. The state budget as a public fund and financial plan
2.2. Rules and procedure for the implementation of the state budget
2.3. The system of collecting budget revenues
2.4. The tax system
2.5. State budget expenditure
2.6. Budget planning
CHAPTER 3. Finance of local government units
3.1. The basics of financial management of LGUs
3.2. Budget of LGUs
3.3. External sources of financing tasks of LGUs
3.4. Result of LGUs' budgets
3.5. Municipal debt in the financial management of LGUs
CHAPTER 4. Social security system - the essence and sources of financing
4.1. Social security - system comments
4.2. Public social funds - the idea, organization and functioning
4.3. Public social funds in Poland
4.3.1. National Health Fund
4.3.2. Public funds on employment and unemployment
4.3.2.1.Labour Fund
4.3.2.2. Guaranteed Employee Benefits Fund
4.3.2.3. State Fund for Rehabilitation of Disabled Persons
4.3.3. Social Insurance Fund
4.3.3.1. Sub-funds of the Social Insurance Fund
4.3.3.2. Old-age pension security funds
4.3.4. Financing social assistance
4.3.5. Funds for the social security of farmers
4.4. The problem of shortages of funds in the social security system
CHAPTER 5. Fiscal policy as an element of maintaining the stability of the public finance sector in Poland
5.1. Measures of sustainability of public finance
5.2. The concept and the scale of general government deficit
5.3. The essence and dilemmas of public debt management
5.3. Economic limits set for dangerous levels of public debt
5.4. Public debt in Poland
5.5. Fiscal rules as a form of preserving the financial stability of the public finance sector
List of references
