3543304676

310 Piolr Ptak

PUBLIC SPENDING POLICY IN POLAND IN THE YEARS 2008-2012

Summary: The recenl deveIopments in public finances led to an explosion of indebtedness in the world. In the aftemiath of the financial crisis the Polish fiscal position has worsened as welL One consequence of the expiosion of public debt is an increase in the vulnerability of a economy to a crisis of confidence on the part of the financial markets. Ho\vever. sufficiently deep and thoughtful reform of public finances can restore confidence in the markets. The analysis of the experience of many countries shows tliat the most favorable scenario is fiscal consolidation focused on the expenditure side. the effects of which are the most durable. The purpose of tliis article is to evaluate the public expenditure policy in 2008-2012, as well as to design an oplimal expenditure policy that enables to acliieve the MTO in a sustainable

Kcywords: public spending, generał goveminent deficit, fiscal consolidation.

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