Business cycles, quality of economic policy and government revenues in Poland

The volatility of general government tax revenues has increased in Poland in recent years. The correlation between GDP growth and revenue growth appears to be lower in Poland than in many other EU Member States, which suggests that the instability of its revenues has a different. This Country Focus argues that discretionary policy measures may be one such cause. This is supported by firm-level survey data on the quality of economic policy – tax policy in particular. It appears that economic policy in Poland has been less predictable, consistent and transparent than in other new Member States, and that this gap in the quality of policy is increasing.