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Public Goods in Financial Services

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EN
A gap between the governmental spending and governmental ownership in the financial sector is one of the main barriers in progress of the public finance reforms in Poland. Only a clear dividing of financial services into public and private goods and same fuzzy semi-public goods can define the scope of governmental presence in our financial service.
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General Budget of the European Union

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EN
In the system of public finances on the union level the central place is taken up by the general budget of the European Union. The amount of assets that are accumulated on it and then transferred to different entities of the Union's economic life define its relevance and importance for the governments of all the member states of the EU. One cannot be surprised by the fact that the budget of the European Union is a regular subject of a sharp political fight of the individual states, members of the EU. The matter connected with the amount of payments made to the Union's treasury by individual EU states creates particular kind of controversies. No state will agree to be a net payer of the Community for a longer period of time. What is more we start to observe a decline in the level of enthusiasm connected with admitting new countries to the group of EU member states. It is caused by the fact that enlarging the Union by new member states carries with it the necessity of spending a great amount of assets from the EU budget for financial support and development of economy of new member states which state and technological level is far even from the union's average. This situation makes the subject of the general budget of the European Union become a more and more discussed category of Union's state finances. In such a context then taking further steps and actions to reconstruct the budget and redefine some of its categories becomes essential. It is in no way an easy task, but necessary to carry out, because of ongoing unification processes in Europe as well as in the world. The present article is an attempt to present the whole structure of the EU budget as well as highlighting those of its elements that are the subject of most controversy.
EN
Poland's accession to the EU increases the role of the public finance as well in the economic as in the social and ecological spheres. It permits utilization of the European funds: the regional, structural, cohesion and ecological funds, thus accelerating a balanced economic, social and ecological development; makes a substantial improvement in the infrastructure possible, if supported by utilization of own means; by applying the principle of solidarity in the allocation of financial aid, results in a reduction in the economic and social differentiation; reduces the unemployment both directly by cofinancing the active labour-market policy projects and by cofinancing other projects that indirectly promote employment; by giving the self-government bodies access to the Community aid, makes it easier for them to execute projects that improve the local infrastructure; promotes changes in the price system and in the level and structure of budget revenues; by enforcing a certain tax harmonization, brings about more neutral market competition conditions, contributes to Europeanization of the labour relations and conditions as well as to the environment protection by imposing certain ecological standards.
EN
Public expenditures are the main instrument governments use to influence the economy. To increase the efficiency of expenditures it is necessary to use a planning method that will concentrate on the a country’s main needs. So, to improve the efficiency of public expenditures, it is necessary to use performance planning in budgeting. The use of performance budgeting is the core of public finance reform in Poland. This paper defines performance budgeting, and examines its advantages and dis¬advantages and the stages of introducing performance budgeting in Poland.
EN
The paper discusses issues of financial policy of local government and methods of the policy, as pursued in communes, counties and provinces. At the same time it points out to the need of enhancing the self-financing of local government entities, the fact being related to the potential for absorption of structural funds of the European Union. Considering this, application of diversified methods of financing of the local government becomes an indispensable condition of its financial activities.
EN
The political and economic situation of Hungary was significantly burdened by the fact that the country had to face the onslaught of the Ottoman Empire for two centuries, which occupied one third territory of the kingdom. Although the country was able to maintain some independence, the important governing bodies of the state administration were located outside the country. After the end of the war period, Hungary, unable to take advantage of the 1848 revolutions, was still not strong enough to attain political and economic independence. The quasi-autonomous state formed only in 1867 as part of the Austro-Hungarian Compromise. The article describes the process of gaining economic independence of Hungary in the sphere of public finances and its significance for the development of the country.
EN
Achieving financial stability is the main concern of Eurosystem activity. Given the role central banking plays in the economy, the Eurosystem must take the lead in supervising financial institutions. If monetary policy is centralised in the Eurosystem, the supervising of financial institutions is carried out by national organs. This paper presents the Eurosystem’s main achievements in financial stability.
EN
Regulations concerning public finance are very important in Polish legislation. It is particularly due to the economic crisis which may cause the loss of liquidity and even insolvency of financial institutions. It forces the state to look for numerous cost reductions. Support instruments have been introduced for entrepreneurs in the environment of economic slowdown caused by global crisis. Numerous changes have been made in the area of taxes, financing environmental protection activities, and agriculture. The rule that transport of people is based on public mass transport subordinated to competitive market rules has been introduced.
EN
The economic policy of Slovakia was in 2005 one of the determinants of the contribution to the strong economic growth and to the relatively high level of the macroeconomic equilibration. The formation of the most relevant segments of the macroeconomic policy led not only to the quantitative improvement in macroeconomic equilibration of the economy (public finance deficit, inflation rate) but also to the improvement of the decision-making policy. The ongoing reform of the public finance governance (in the field of fiscal policy) and the inflation targeting (in the field of monetary policy) led to the improvement of the credibility of these economic policy segments.
EN
In this paper issues related to the definition of the public finance are raised, the different definitions of the public finance are compared, the attention is called to the differences, contextual contradictions of such definitions, eventually to the discrepancy with the practice of the statistical reporting. The approach to search the definition attributes leading to the distinguish public finance of other financial relations is related to the analytical concept provided by ESA 95 and GSF 2001.
EN
(Title in Polish - 'Budzet Unii Europejskiej po 2013 roku - kierunki zmian w swietle analizy stanowisk rzadów krajów czlonkowskich'). The creation of principles of financing the European Union which are to come into force in 2014 is connected with some serious challenges. Taking into account the existing differences in the level of economic development of the present European Union member states, it is essential to acknowledge the mechanisms of solidarity. There is some concern that in the future that solidarity will continue to decrease. The establishment of a new source of individual funds in the form of income from the so-called European tax is not very probable due to an evident opposition from a big group of countries. The spending which will certainly cause the biggest controversies among the member states is the financing of the Common Agricultural Policy and regional support. An important area for negotiations will also be constituted by the issue of rebates which benefit the United Kingdom and some other countries being net payers. The shape of the future European Union budget will be determined by the integration model which is planned to be practically implemented. The key issue is whether the future integration model will be limited to the implementation of ambitious long-term objectives or only to current intervention activities. The factor that will strongly affect the negotiations of how to finance the European Union in the period after 2013 is the condition of public finance in the member states, especially those which are net payers. The global economic crisis caused a considerable increase of budget deficits and resulted in the rise of public debt. Thus, the possibilities to increase the Union budget are rather limited.
EN
Poland is interested in entering the euro zone in the next few years. Replacing a zloty with a euro should constitute a considerable incentive for the development of the Polish economy. However, this has to be preceded by fulfillment of certain economic conditions referred to as the criteria of convergence. One of these is a criterion concerning public finance. Fulfilling this criterion may turn out to be very difficult for Poland. Therefore, the experiences of the euro zone countries of reducing the budget deficit and public debt are of vital importance here.
EN
The article presents another opinion in the discussion held in our pages related to management control in public finance sector units. The article is the authors' reply to the article by Mariusz Matysek entitled Reference Model for the Management Control System, published in the 2/2011 edition of our bimonthly, which emphasised the complexity of the notion and experience related to the functioning of the Controlling Department in the Social Insurance Institution (ZUS). According to the authors of this article, it is required to strengthen the coordinating function in an organisation to introduce management control. And to do so, controlling tools may prove very useful.
EN
For a few years, works have been conducted in Poland that have resulted in the implementation of elements of modern public funds management to the public finance system. The amended Act on public finance of December 2010 has introduced another new solution, namely the discipline rule for expenditures that reduces the growth of public spending. This rule obliges the government to preserve the pace of the so called 'flexible' expenditures at the level of the inflation planned for the given year, increased by one percentage point. Simultaneously, new regulations with regard to the methods for developing bills by the government have been introduced to the law. They set forth the obligation to include in bills adopted by the government (also in amendments to the existing acts) the maximum limit of financial results for public finance sector units that stem from the proposed regulations for a ten-year period. Moreover, new legal regulations must include one or several corrective mechanisms that have been proposed in the amended Act on public finance. The article presents these changes.
EN
The aim of this study was to identify the relationship between a wrong long-term fiscal policy and the levels of unemployment. The following hypothesis was subject to verification: a high level of unemployment is one of the negative effects of long-term excessive deficit and public debt. The study concerned the years 2000–2011 and used the method of comparative analysis. The group of countries with relatively stable public finance includes: the Netherlands, Denmark, Finland, and Sweden, while countries with unstable public finance are Greece, Portugal, Italy, and Belgium. The countries selected for the analysis were all among the 15 countries of the so-called “old” Member States. The study hypothesis was verified positive. Countries that had a long-term excessive debt and excessive deficit (exceeding the accepted standards) did nothave a lower unemployment rate than the countries which at that time hadastable and sustainable fiscal policy. The continuous fiscal expansion, which in fact leads to a destabilisation of public finance, did not protect these count ries against high unemployment. At the same time, faced with unexpect edexternal shocks (the crisis), these countries were not adequately prepared to absorb the negative effects.
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2010
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vol. 6
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issue 4
36-50
EN
The article is an attempt to diagnose the current condition of public finances in Poland. The authors have adopted the goal of analyzing the impact of financial crisis on the condition of domestic public finances, referring to the results of findings of indexes describing public finance in European Union countries. The article is a view of domestic comparisons of the current situation of public finances against the background of crisis that affected the economy of each of the EU countries. The article evaluates and examines the scale and the impact of the consequences of the crisis on the condition of public finances in Poland, pointing to threats that influence the stability of the financial system as an effect of abandonments to reform of public finances.
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2010
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vol. 6
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issue 2
76-87
EN
This article deals with the economic budget of local governments units. This paper includes the study of local government units in the Podkarpacie region and the main subject of the article are evolution directions of income policy and government spending in 'gminas' (communes). The analysis of local government finance between the years 1999-2008 emphasizes the changes in the priorities of public spending. Reorientation are not only trends, also the nature of realizing budgetary economy. As a result, it seems a reasonable approach to the revision of these changes.and analysis of their substrate. Not without significance is the impact of legislative amendments to change the financial management local government units. The article outlines the above subjects and the nature of its deliberations in a way that reflects the theme of comprehensive changes taking place in local government finance.
EN
In the article, the author describes the key aim of the government-led budget policy. This economic sub-policy, often called the fiscal policy, not only is concerned with government expenditure and revenue collection, but also influences social and economic policy. The author first explains the importance of the budget policy then goes on to look at different instruments that can ensure state budget expenses do not exceed income. Additionally, improving performance budgeting will enable the Polish government to reform public finances, which is necessary for socio-economic development. Moreover, the introduction of a multi-year planning budget is an important component of the evaluation of current budgetary procedures. Finally, the author analyses the yearly budget deficit and consequently the growth of public debt during Poland’s transformation period. The aim of this article is to provide an overall analysis of the budget policy led by the government.
EN
The paper presents the analysis of economic growth determinants in the 10 Central and Eastern European countries (CEE-10 or EU-10): Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia. The analysis covers the period 1993-2007. The author tests many macroeconomic variables that are potential economic growth determinants. His calculations are based on the average data for five 3-year subperiods: 1993-1995, 1996-1998, 1999-2001, 2002-2004, and 2005-2007. The analysis consists of three steps. In the first step, he chooses the variables that can be tested as potential economic growth determinants. The selection is based on economic significance and data availability. In the second step, he performs the correlation analysis in order to choose the variables for the econometric model. The third step is the regression analysis. He estimates many variants of empirical models of economic growth and he chooses those that are the best in explaining the differences in the GDP dynamics between the CEE countries. The author's results indicate that the most important economic growth determinants in the CEE-10 countries are: investment rate (including FDI), human capital measured by the education of workers, financial sector development proxied by the capitalization of stock exchange and the ownership structure of the banking sector (important role of foreign banks), good fiscal stance (low budget deficit and low public debt), economy structure (high services share in income and low agriculture and industry shares), low interest rates, low inflation and slow money growth, advantageous age structure of the population (low share of economically inactive people), computerization of the economy measured by the mobile penetration rate and the number of computers, high private sector share in GDP, and good institutional environment (e.g. high scope of economic freedom and the progress of market reforms). Moreover, his analysis indicates that the CEE countries have been developing in line with the conditional convergence hypothesis while the absolute convergence has not been confirmed.
EN
After the unexpectedly severe recession (2009) and equally unexpected recovery (2010), the Slovak economy balanced between recovery and a second recession for two years (2011 and 2012). The Slovak economy was more resilient against “the second wave of the crisis” than previously expected. Although the euro area was in recession in 2012, the Slovak economy grew (albeit slightly). However, after the significant deceleration of economic growth in the last quarter of 2012, the expectations of a recession have returned. After approximately one and a half year of waiting, the Slovak economy will be fully confronted with the second wave of the crisis. The economy cannot resist the second wave of the recession (which has already hit the euro area) forever. Significant slowdown hits the economy at a time when the euro area economy has started to improve gradually. This could mean that the significant decline in economic growth could be coupled with a possible alleviation of the difficulties.
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