Healing the budget

The professors see two ways to centralize the budget process: by creating fiscal contracts; or by strengthening the position of the Finance Minister. Fiscal contracts would set fiscal targets and limits for different types of expenditure. It should also include emergency plans in case of a recession.

The other option is to give the Finance Minister more control in managing the budget. The Minister could block certain expenditure and make cuts if there is a danger of exceeding the budget deficit.

The authors claim that the two roads depend on the shape of the government. In the Polish multi-party system, where coalition governments are becoming the standard, the fiscal contract option seems more logical. Regardless of the form of centralization of the government, the authors claim that the rules for passing financial bills and laws should be more restrictive, to avoid laws being passed that contradict budget targets.