The Fiscal Council agrees with the IMF that stabilizing Poland’s public debt should be a priority economic policy goal.
Fiscal Council Agrees with IMF Assessment
The Fiscal Council shares the position of the IMF that stabilizing public debt should be a priority of economic policy, and that the actions presented so far by the government may prove insufficient to achieve this goal.
Two Paths for Fiscal Consolidation
The Council agrees with the key thesis in the IMF report: if Poland wants to maintain the current level of public spending, a permanent increase in public revenues will be necessary.
Alternatively, with limited social and political acceptance for increasing tax burdens, a reduction in public spending will be necessary.
Comprehensive Approach Required
The Council emphasizes that the scale of the imbalance is so large that consolidation must include many solutions, both on the expenditure side and the revenue side.
