The Constitutional Basis For The Functioning Of Public Finance In Poland

The Constitutional Basis For The Functioning Of Public Finance In Poland Presented by: Dr. Mikos-Sitek Date: 15 February 2024 Sources Of Law - Constitution of the Republic of Poland of 2 April 1997 (Journal of Laws No. 78, item 483 as amended) - Act of 27 August 2009 on public finance (consolidated text: Journal of Laws of 2022, item 1634, as amended) - LOCAL GOVERNMENT ACTS • Act of 8 March 1990 on municipal self-government (consolidated text: Journal of Laws of 2023, item 40 as amended) • Act of 5 June 1998 on county self-government (consolidated text: Journal of Laws of 2022, item 1526 as amended) • Act of 5 June 1998 on province self-government (consolidated text: Journal of Laws of 2022, item 2094 as amended) • Act of 13 November 2003 on revenues of local government units (consolidated text: Journal of Laws of 2022, item 2267) Scope Of Regulation Of The Constitution Of The Republic Of Poland - Requirement for statutory regulation - State budget - Budget law and procedure for its adoption - Deficit and public debt institution - Financial management of local authorities - Public levies (primarily taxes) - Central bank of the state - National Bank of Poland Public debt in the Constitution of the Republic of Poland - Importance of the provisions of the Polish Constitution from the point of view of safeguarding the state against excessive debt - Requirement of statutory regulation with regard to the issue of borrowing and the provision of guarantees and financial warranties by the state - Requirement of a statutory regulation to determine the calculation of the value of annual GDP - Article 216(5) of the Constitution of the Republic of Poland, which sets the permissible limit of state public debt at 60% of annual GDP - Fiscal sustainability as a constitutionally protected value Deficit in the Constitution of the Republic of Poland - Article 220 of the Constitution of the Republic of Poland Protection of the principle of budgetary balance • Article 220(1)  Principle of budgetary balance "The Diet, which may not set a larger budget deficit than that provided for in the budget bill". o The role of the Council of Ministers in the budget process o Responsibility for budget implementation • Article 220(1)  "The Finance Act may not provide for the budget deficit to be covered by borrowing from the Central Bank of the State". o Rule against excessive deficit o Guarantee of independence of the central state bank Disputed Regulations - Material scope of the definition of public debt • Debt titles  Cash/Accrual method calculation of government debt  Guarantee and suretyship liabilities - Capturing the public finance sector • Established by indicating the catalogue of entities constituting this sector • Based on the criterion of the activity carried out and the mode of financing adopted for the entities constituting the sector - Adaptation difficulties • Fiscal rule compliance • Rules strengthening protection against excessive debt • Prudential and sanctioning procedures