Tax expenditures w konstrukcji reguły wydatkowej
Tax expenditures in the construction of the expenditure rule

Summary/Abstract: Under the crisis conditions, in many countries there has been a sharp rise in the budget deficit and public debt. Therefore, fiscal policy has faced a major challenge to develop an appropriate strategy leading to strengthen public finances. Institutional mechanisms which can include fiscal rules, and expenditure rules as well, may be undoubtedly helpful in maintaining fiscal discipline. The effectiveness of these rules depends on the proper design and the inclusion of the broadest aggregate of expenditures, including those that have not been included in the budget, including tax expenditures, among others. The purpose of this paper is to present the nature of tax expenditures as a form of indirect public spending, often used by politicians because of the ability to hide and omit in the budget procedure, and an attempt to answer the question: whether such an expenditure should be included in the design of fiscal expenditure rule. The paper is based on literature studies and the analysis of the data published by the European Commission.

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