External and Internal Circumstances for the Use of Numerical Fiscal Rules in Poland

Abstract

The current situation in the sector of public finances in numerous states is highly unstable with quite uncertain prospects which are unlikely to be assessed. Risk levels have soared disproportionately on domestic and international markets, thereby impeding efforts to overcome the slowdown and even shrinking the sphere of the real economies of various states. One of the most visible signs of this turbulence in economic life is continued sovereign debt at hazardously high levels. Against such a background, it was crucial to take decisions with regard to immediate measures, such as spending cuts or tax rises, as well as long-term measures reinforcing institutional and organizational frameworks in the sphere of public finances. One of the elements of new fiscal frameworks postulated is a collection of tools for leading-edge public funds management, defined as fiscal rules.
Keywords: Budget, Fiscal rules, Public finance, Public debt.