Development Policy Loan 2

closed

Closed

The Second Public Finance Development Policy Loan Program is structured around three pillars with the following development objectives: 1) consolidating public finances to ensure a steady decline of the fiscal deficit to stabilize and over the medium term reduce public debt; 2) strengthening fiscal institutions to ingrain a prudent fiscal stance (including at the subnational level) over the medium term; and 3) advancing long-term fiscal reforms to secure the sustainability of social spending in view of Poland's demographic challenge program, in a programmatic series of two development policy loans, supports the government of Poland in strengthening its public finances. Sound macroeconomic policies coupled with limited external imbalances have helped Poland maintain economic growth despite the slowdown and economic uncertainty in Europe since 2008. Notwithstanding these positive developments over the past few years, Poland is not immune to the protracted recession in the Euro area. Poland's economy has performed well during and after the 2008 global financial crisis. Strong macroeconomic fundamentals, including limited macroeconomic imbalances at the onset of the crisis, large and diversified domestic economy, close trade and supply chain linkages to Germany and adequate policy mix prior to and during the crisis, helped the economy withstand external shocks. The growth in government spending was contained by: a) a temporary fiscal rule limiting increases in all newly enacted and existing discretionary expenditure items to one percentage point over the rate of inflation (CPI); and b) a nominal freeze of the budgetary sphere wage bill, and c) phasing out of early retirement schemes.

FY17 - Financial Sector,FY17 - Public Administration,FY17 - Social Protection

World Bank Group

Project

Warehouse, Hospital, Hotel, Government