Stabilising expenditure rule in Poland – stochastic simulations for 2014-2040

Dominik Korniluk ()

No 19, MF Working Papers from Ministry of Finance in Poland

Abstract: The stabilising expenditure rule (SER) imposed on general government (GG) sector in Poland has been binding since 2014. According to this rule, about 90% of GG expenditure will grow in line with the real medium-term GDP, or slower if there is excessive debt or deficit, or balance does not meet the medium-term objective. It was shown in this paper how the SER affects the most important public finance indicators in the period 2014-2040. The consequences of the lowered debt thresholds in the SER's correction mechanism due to the pension reform were also presented. Finally, future fiscal policy conducted under the new rule was simulated and assessed.

Keywords: stabilising expenditure rule; stochastic simulations; debt thresholds; fiscal policy cyclica lity (search for similar items in EconPapers)
JEL-codes: C53 E62 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2014-09-01, Revised 2014-09-01
New Economics Papers: this item is included in nep-age, nep-cmp and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:ris:mfplwp:0019

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