Public finance

Question 1

Public finances in Poland

Answer 1

1) Collection of public revenues and revenues
2) Spending of public funds, financing of public goods and administration
3) Public debt management
4) Settlements with the EU

Question 2

State budget

Answer 2

1) Includes expenditure and revenue of the public finance sector
2) Regulated by legal acts
3) Compatible with ESA (EU) and SNA (UN)
4) The state budget can mean
• Allocation – division into private and public goods
• Stabilization – anticyclical spending
• Redystrybucyjna

Question 3

The state budget can mean

Answer 3

• Monetary resources of public finances
• Annual statement of revenue and expenditure
• Legal act regulating expenditure and revenue

Question 4

Fixed public expenditure

Answer 4

expenditure the amount of which is specified in legal acts and is not dependent on the current economic situation

Question 5

Principles of the state budget

Answer 5

1) Balance sheet principle or intertemporal balance sheet
• Balance sheet principle – all expenses must be covered by revenue
• Intertemporal balance sheet – a deficit may arise if expenditure contributes to income growth at a later stage

2) Shared use
• Every unit in the country is related to the state budget through taxes, subsidies or transfers.
3) Transparency
• The budget is published which is regulated by legal acts
4) Annual timeframe
• Budget drawn up for the year, budgetary perspectives for several years

Question 6

Budgetary expenditure

Answer 6

1) Consumer expenditure, e.g. salaries of administrative employees
2) Capital expenditure – infrastructure, etc.
3) Transfer expenses

Question 7

Budget revenue

Answer 7

1) Taxes
2) Social security contributions
3) Grants from international organisations
4) Income of state-owned companies
5) Seniorat – mennicza rent

Question 8

Public debt

Answer 8

accumulated financial liabilities of the public sector after eliminating financial flows within the sector

Question 9

Types of public deficit

Answer 9

1) Cyclic
2) Structural – occurs under the assumptions of full utilization of production capacity
3) Actual – actual budget outturn

Question 10

Ways to finance the deficit

Answer 10

1) Budget surpluses
2) Bond issuance
3) Credits
4) Privatization
5) Money issuance
6) Obtaining grants from international organizations

Question 11

Types of public debt

Answer 11

1) Domestic or foreign

2) Short-term (up to a year), medium-term (1-10 years), long-term (10+ years)