IMF Staff Country Reports

This 2002 Article IV Consultation highlights that the fiscal deficit of the Republic of Poland widened sharply in 2001, reflecting both automatic stabilizers and a ½ percent increase in the structural deficit. State (central government) primary expenditures (excluding one-off transfers) rose relative to GDP by 1 percentage point, notwithstanding cutbacks late in the year. Two factors accounted for this rise: significant increases in transfers and subsidies to households, agricultural and state enterprises, as well as wages; and outcomes for inflation and growth that were far below budget projections.