Cover Technical Assistance Reports
Buy Book in Print
Republic of Poland: Technical Assistance Report-Aligning the Stabilizing Expenditure Rule to the European Union Fiscal Framework
Author:
International Monetary Fund. Fiscal Affairs Dept.
Search for other papers by International Monetary Fund. Fiscal Affairs Dept. in
Current site
Google Scholar Close
Series:
Technical Assistance Reports
Volume/Issue:
Volume 2024: Issue 049
Language:
English
Publication Date:
12 Jun 2024
DOI:
https://doi.org/10.5089/9798400278327.019
ISBN:
9798400278327
ISSN:
3005-4575
Pages:
54
Keywords:
Expenditure rule; Fiscal rule; Correction mechanism; EU economic governance; fiscal framework; Debt; Expenditure baseline; Republic of Poland.; SER limit; net expenditure path; EU net expenditure indicator; expenditure path; Fiscal rules; EU governance framework; Fiscal governance; Fiscal councils; Global
Download PDF (5.6 MB) Download Epub
The stabilizing expenditure rule (SER) in Poland has been instrumental in fostering fiscal discipline in the years leading up to the pandemic. The pandemic and subsequent shocks severely tested the expenditure rule. Returning to the SER limit after severe shocks proved challenging, making clear the needs to revise the SER to preserve its credibility. The government could enhance the credibility of the expenditure rule through broadening its coverage and strengthening compliance, including establishing an independent fiscal council. Moreover, aligning to the EU fiscal framework will require (i) ensuring expenditure limits implied in the SER to be consistent with the EU net expenditure path; and (ii) providing explanation on the differences in expenditure coverage and classification between the SER and the EU fiscal framework to ensure compliance. Over time, transition to binding multi-year limits in the SER would improve linkages between annual budgets and medium-term fiscal planning.
  • Collapse
  • Expand
Cover Technical Assistance Reports
Technical Assistance Reports
ISSN:
3005-4575
Publisher:
International Monetary Fund