FISCAL COUNCILS AS AN ELEMENT OF THE INSTITUTIONAL ENVIRONMENT OF FISCAL POLICY – THE CASE OF POLAND

Fiscal institutions, along with fiscal rules and budgetary procedures, are elements of the institutional environment of fiscal policy. Well pursued fiscal policy is reflected in the fiscal situation of a given country. The activities of many EU member countries and of Poland, done up till now, have been insufficient to keep the discipline in public finance. The effect of the lack of the discipline is a long-term budget deficit and public debt. According to the studies by the European Commission, the level of budgetary deficit in the countries with an independent fiscal institution was considerably lower than that in the countries without such an institution. Independent fiscal institutions in the European Union member countries and in the world differ according to their tasks, rights and responsibilities. It results predominantly from the political conditions, existing institutional arrangements and from the challenges facing fiscal policy in particular countries. The aim of the article is to indicate the possibility to create in Poland an independent institution which would support the maintaining discipline of public finance and increase the transparency of the fiscal policy pursued by the public authorities. The following hypothesis is stated in the article: in Poland there is a real opportunity for functioning of an independent fiscal council, which would act as a guardian of the condition of public finance and as an advisor, and would watch the pursuing of a correct fiscal policy.