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Expenditure of Poland’s Agricultural Budgets in the Context of Selected Macroeconomic Relations

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  • Andrzej Czyżewski
  • Ryszard Kata
  • Anna Matuszczak

Abstract

The article analyses the dynamics and structure of agricultural expenditure in Polish state budgets in 1995–2020, which is the basis for considerations on the relationship between budget expenditure on agriculture and the dynamics of GDP and the dynamics of the state budget. The analysis concerned both nominal values and values adjusted by the CPI inflation index. In the pre-accession period (1995–2003) real spending on agriculture, excluding subsidies to ASIF, showed a downward trend. The situation changed after Poland’s accession to the European Union. In 2004–2009, there was a rapid increase in the total agricultural budget (including national and EU funds) and a change in its structure towards pro-development goals. At the same time, agricultural budget expenditure became largely dependent on European funds. Since 2009, a stabilisation of real spending on agriculture can be observed, and between 2015 and 2019 even a slight downward trend, with a renewed increase in redistributive objectives in the spending on agriculture and rural areas. The Polish agriculture benefited unevenly from the effects of economic growth recorded between 1995 and 2020. However, taking into account only development expenditure on agriculture (excluding social expenditure, or ASIF), above-average benefits of the analysed sector are observed. Moreover, the average growth rate of total agricultural budget expenditure (including domestic and EU funds), was slightly higher than the growth rate of state budget expenditure.

Suggested Citation

  • Andrzej Czyżewski & Ryszard Kata & Anna Matuszczak, 2022. "Expenditure of Poland’s Agricultural Budgets in the Context of Selected Macroeconomic Relations," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 41-66.
  • Handle: RePEc:aoq:ekonom:y:2022:i:1:p:41-66
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    File URL: https://ekonomista.pte.pl/pdf-150161-75882
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    References listed on IDEAS

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    2. Kryszak, Łukasz, 2020. "Income Convergence In The Agricultural Sector In The Context Of The European Union’S Common Agricultural Policy," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2020(3).
    3. Mishra, Ashok & El-Osta, Hisham & Gillespie, Jeffrey M., 2009. "Effect of agricultural policy on regional income inequality among farm households," Journal of Policy Modeling, Elsevier, vol. 31(3), pages 325-340, May.
    4. Simone Severini & Giuliano Di Tommaso & Robert Finger, 2019. "Effects of the Income Stabilization Tool on farm income level, variability and concentration in Italian agriculture," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-22, December.
    5. Rolf Jens Brunstad & Ivar Gaasland & Erling Vårdal, 1995. "Agriculture as a provider of public goods: a case study for Norway," Agricultural Economics, International Association of Agricultural Economists, vol. 13(1), pages 39-49, October.
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    Citations

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    Cited by:

    1. Czyzewski, Andrzej & Kata, Ryszard & Matuszczak, Anna, 2023. "Kierunki Zmian W Wydatkach Budżetu Rolnego Polski W Okresie Rządów Kolejnych Koalicji W Latach 2010-2023," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2023(3).
    2. Ryszard Kata & Małgorzata Wosiek, 2024. "Income Variability of Agricultural Households in Poland: A Descriptive Study," Agriculture, MDPI, vol. 14(3), pages 1-17, February.

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    More about this item

    Keywords

    budget expenditures; GDP; agriculture; CAP; ASIF;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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