Public Debt Sustainability and the COVID Pandemic: The Case of Poland

Abstract

Abstract This paper aims to analyse and assess the impact of the COVID pandemic effect on the public debt sustainability level in Poland. We put the following research hypothesis in our study: the pandemic period disallowed the production of primary fiscal surpluses and increased the level of fiscal unsustainability in Poland. We took the data from Eurostat and the European Commission databases. We used the Primary gap indicator and no-Ponzi condition as the research methods (for the short-term and the long-term analyses, respectively). Both methods derive from the theory of the intertemporal budget constraint. The results of the empirical studies did not allow us to reject the research hypothesis.