Sub-sovereign Fiscal Rules in Poland in Comparison with Measures Adopted in the US, China, and Selected EU Countries

Abstract

Measures to increase debt sustainability and related creditworthiness play an important role in sovereign fiscal policy. The establishing of fiscal rules delimits fiscal policy through specific limits for particular budget aggregates. Fiscal rules in Poland were analyzed against measures applied in European Union countries, with emphasis on changes due to COVID-19. Also differences in fiscal rules at the regional and local level in the United States, China, and Poland are described. Conclusions from the research lead to the identification of a relationship between the restrictiveness of the rules and possibilities to maintain budget balance and prevent excessive indebtedness. Important conclusions may be also drawn from different reactions for crisis in the fiscal rules area – from relaxing the rules to wide use of special fund or financial vehicles – which were crucial states reply to fiscal burdens.