Long-Term Programs as Instruments for the Effective Management of Public Finances: Fact or Myth?

Abstract

Long-term planning is recognized by modern science as an indispensable tool for the modern management of broadly understood finances, both private and public. It has been present for years in the financial management of many countries throughout the world. Therefore, it is reasonable to strive to adopt a similar system in relation to public finances in Poland. The sudden importance of long-term financial planning (budgeting) occurred in Poland along with its accession to the European Union. This is borne out by not only the need for social, economic, and financial national plans to take into account the common objectives of the European Union, but also the methods for preparing the plans, establishing priorities, strategic areas, etc. Poland, in becoming a member of the European Union, has also, to some extent, become the subject of planning. Current considerations lead to the conclusion that the strongest and most direct link of long-term planning with annual planning is long-term programs. Thus, the objective of this paper is to undertake analysis of this instrument of public finance management, with special emphasis on the pros and cons of such a solution. The author also proposed specific changes in relation to the multiannual programs that, in her opinion, will increase the effectiveness of the management of public funds allocated for their implementation.

Keywords

• planning medium-term
• long-term programs
• effectiveness
• public finance