Expenditure sphere of Polish public finances in 2010. Trends in sector reform

Strength of country depends on its public’s finance condition. Recentlymost of European’s governments had a problem with the budget and the public debt. The same circumstances were in Polish public finance. In 2010 expenditures exceeded incomes, value of the budget deficit was about 45 billion zlotys. In compliance with ESA 95 standard the general government deficit reach almost 111.5 billion zlotys. That situation had impact to the public debt which amount 748.5 billion (the general government debt amount 778.2 billion zlotys). Although Poland had met convergence criterion, the public finance need reforms. In the article were presented three solutions. First of all, expenditures connected with the public administration and government consumption should be reduced. Secondly, reasonable cuts of benefits, especially unemployment benefits and groundless benefits, could bring savings which will be transferred to institution thatmanage the vocational activation. In the third place, the pension system needs intense reforms. System should be standardize and all of privileges have to be eliminated. Those solutions would be the beginning of greater changes.