Poland had built fiscal buffers in the years before the COVID-19 pandemic through, among other things, improved tax collection and robust growth. This created the fiscal space needed to respond to the pandemic, which triggered Poland’s first annual output contraction in 30 years. The fiscal deficit and debt level deteriorated markedly in the wake of the crisis.
Coming out of the crisis, Poland could make better use of public finances as a powerful tool to foster sustainable and inclusive development. Once the economic recovery is on a solid footing, revenue and expenditure measures will be needed to rebuild fiscal space. As part of this process, fiscal policy could be reoriented to better prioritize growth-enhancing investments and to support a just transition to a low-emission economy, which will require significant public and private resources.
The Poland Public Finance Review examines the implications of these trends for fiscal management and recommends measures to help support the green, resilient, and inclusive agenda. The report also discusses challenges in fiscal transparency that will be critical for implementing Poland’s recovery plan after the crisis.