Does the applied creative accounting in the design and implementation of the central, financial state budget, government-run public finances of the state, the formation of the level of tax revenues to the state budget and expenditures, the generation of a certain level of debt of the system of public finances of the state generate the occurrence of a financial crisis in the future in terms of the system of public finances of the state?

In the country where I operate according to the content of Article 219 of the Constitution of the Republic of Poland, the state budget should be implemented in accordance with the Budget Law and the Budget Law also in accordance with the Constitution. However, in Poland, a kind of second, additional, alternative “state budget” based on additional expenditures realized with printed money has been in operation for several years. This additional “state budget” functioning in addition to the official state budget is in fact not a budget at all, but is made up of financial special purpose funds specially created for this purpose in the Bank Gospodarstwa Krajowego and the Polish Development Fund, which are fed with printed money. The mechanism of the aforementioned money printing, i.e. the national currency PLN, was used in Poland on a historically exceptional scale for the first time during the Covid-19 pandemic. the government in Poland at the time took advantage of the confusion that arose during the Covid-19 pandemic in the financial markets, including the capital markets, to introduce, on the one hand, lockdowns deepening the recession of the economy and financial support programs for the economy based on the large amount of printed money introduced into the economy. The mechanism of the aforementioned money printing, i.e. the national PLN currency, was borrowed from other countries that used this solution during previous deep economic and/or financial crises. For example, during the global financial crisis of 2008, this mechanism was used on a large scale in some countries, but then it was a matter of financial support of the banking system with money coming from the state's public finance system in order to maintain the liquidity of commercial and investment banks, i.e. institutions that were largely responsible for causing the said financial crisis. In Poland, on the other hand, during the pandemic economic crisis of 2020, the procedure of introducing a large amount of printed money into the economy was not aimed at supporting the banking system, which was in a good situation and in the following years 2021-2024 recorded record profits, nor was it aimed at financially supporting the implementation of pro-development investment projects, in which new technologies, etc. would be implemented. The printed, anti-crisis money was given to a large number of companies and enterprises operating in various sectors of the economy in the form of subsidies to pay fixed costs and subsidies to employees' salaries on the condition that business activity was maintained despite the lockdowns and periods of national quarantine that had been introduced, and on the condition that the state of employment was maintained despite the real significant reduction in the scale of business activity. The idea was that the official level of employment shown by the Central Statistical Office would not fall and the level of unemployment would not rise in the business sector. The result of this unconstitutional procedure was that the government generated one of the highest inflation rates that occurred in Poland compared to Europe in the years 2021-2023. The mechanism of the aforementioned money printing, i.e. the national currency PLN, consisted in Poland in that the central bank, i.e. the National Bank of Poland, indirectly bought certain issues of rolled-up treasury bonds, and in this way more than 300 billion PLN of additional money was introduced into the economy without coverage in manufactured products and services. These additional series of Treasury bonds were transferred to the special purpose funds of the Bank Gospodarstwa Krajowego and the Polish Development Fund. The central bank then redeemed them, and in this way the printed money was introduced into the aforementioned special purpose funds. The earmarked funds of the Bank Gospodarstwa Krajowego and the Polish Development Fund were excluded from the official state budget, and in this way the government implemented a kind of creative accounting for the state's public finance system.

The key issues of the impact of the Covid-19 pandemic on the economy and financial markets are described in my article below:

IMPACT OF THE CORONAVIRUS PANDEMIC (COVID-19) ON FINANCIAL MARKETS AND THE ECONOMY

Article IMPACT OF THE CORONAVIRUS PANDEMIC (COVID-19) ON FINANCIAL M...

I have described some of the issues of the above in the following articles:

IMPACT OF THE SARS-COV-2 CORONAVIRUS PANDEMIC (COVID-19) ON GLOBALIZATION PROCESSES

Article IMPACT OF THE SARS-COV-2 CORONAVIRUS PANDEMIC (COVID-19) ON ...

POLAND'S 2022 ENERGY CRISIS AS A RESULT OF THE WAR IN UKRAINE AND YEARS OF NEGLECT TO CARRY OUT A GREEN TRANSFORMATION OF THE ENERGY SECTOR

Article POLAND'S 2022 ENERGY CRISIS AS A RESULT OF THE WAR IN UKRAIN...

I described the key issues of anti-crisis state interventionism in my article below:

Anti-crisis state intervention and created in media images of global financial crisis

Article Anti-crisis state intervention and created in media images o...

Analysis of the effects of post-2008 anti-crisis mild monetary policy of the Federal Reserve Bank and the European Central Bank

Article Analysis of the effects of post-2008 anti-crisis mild moneta...

I invite you to familiarize yourself with the issues described in the above-mentioned publications, as well as to scientific cooperation in these issues.

In view of the above, I address the following question to the esteemed community of scholars and researchers:

Does the applied creative accounting in the design and implementation of the central financial state budget, the government-run public finances of the state, the formation of the level of tax revenues to the state budget and expenditures, the generation of a certain level of debt of the system of public finances of the state generate the occurrence of a financial crisis in the future in the system of public finances of the state?

Does the applied creative accounting in the field of public finances of the state generate the occurrence of a financial crisis in the future?

What do you think about this topic?

What is your opinion on this issue?

Please answer,

I invite everyone to join the discussion,

Thank you very much,

Best wishes,

Dariusz Prokopowicz

The above text is entirely my own work written by me on the basis of my research.

In writing this text, I did not use other sources or automatic text generation systems.

Copyright by Dariusz Prokopowicz