Poland’s Fiscal Council agrees with the IMF that stabilizing public debt should be a priority, requiring either increased revenues or reduced expenditures.
Agreement 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 be insufficient to achieve this goal.
Two-Path Approach to Consolidation
The Council also agrees with the key thesis in the IMF report: if Poland wants to maintain current levels of public spending, a permanent increase in public revenues will be necessary; alternatively, with limited social and political acceptance for increased tax burdens, a reduction in public spending will be required.
Scale of Imbalance Requires Comprehensive Solutions
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.
