The Central Bank and the State Budget: Selected Legal Aspects

Abstract

The Polish Central Bank (National Bank of Poland – NBP) performs mainly macro-economic tasks, for maintaining price levels. This Bank is not focused on tasks aimed at the interests of the State Budget. The Central Bank has a lot of power in the creation of money. It seems, there is possible to create the budgetary revenues, which are connected with the emission of money. In particular, the income from emission of coins may be determined as the budget revenue. The connection the Treasury with the Central Bank results from the historical evolution of the origin and role of the Central Bank. It is reasonable to increase the role of the treasury securities in the Central Bank activity. The Treasury Bills should be used in the open market policy leading by the Central Bank. There is the issue of changing of the Constitution of the Republic Poland in the field of limit of the public debt (60% of GDP). It seems, the Polish Constitution should not be the only constitution in the world that introduced such a limit. This limit, and the limit on annual budgetary deficit, introduces EU law. That is a sufficient legal limit.