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

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.