Assessment by the Fiscal Council: Compliance of the Proposal of Revised State Budget 2019 with the fiscal rules
The proposed revised state budget and the already adopted Framework for the Preparation of the General Government Budget indicate an expansionary and pro-cyclical fiscal policy in 2019. In the Fiscal Council’s opinion, such policy is unsuitable in the current conditions. In this regard, the Fiscal Council considers it worrying that the growth in revenue, achieved mainly through economic growth, will be accompanied by a sustained increase in expenditure, which will not simultaneously address structural challenges of public finances.
The proposed revised state budget and the already adopted Framework for the Preparation of the General Government Budget indicate an expansionary and pro-cyclical fiscal policy in 2019. In the Fiscal Council’s opinion, such policy is unsuitable in the current conditions. In this regard, the Fiscal Council considers it worrying that the growth in revenue, achieved mainly through economic growth, will be accompanied by a sustained increase in expenditure, which will not simultaneously address structural challenges of public finances.