Anti-crisis fiscal policy in the face of the COVID-19 pandemic and the energy crisis and its consequences

Abstract

The aim of the article is to diagnose the differences in the anti-crisis fiscal policy in 2020-2022 conducted by the governments of Polish, Czech, Hungarian and Slovak during the COVID-19 pandemic crisis and the energy crisis. The following research questions were asked :

What was the fiscal situation of Polish, Czech, Hungarian and Slovak countries after the pandemic and energy crisis at the end of 2024, considering the level and ratio of the deficit and debt of the general government sector to GDP?

What fiscal policy measures have the governments of Poland, the Czech Republic, Hungary and Slovakia taken during the pandemic and energy crisis and what was their scale? Which of the countries incurred the lowest and largest costs in relation to GDP?

The results of the empirical analysis indicate that at the end of 2024, i.e. after the pandemic period and the energy crisis, the best fiscal situation was in the Czech Republic, as evidenced by the lowest debt-to-GDP ratios and general government deficits. Hungary was in the worst situation, with its indicators clearly exceeding the permissible standards applicable in the European Union (general government deficit of 5.1% of GDP and general government debt of 75.8% of GDP).

During the periods of crisis analyzed, the governments of Poland, the Czech Republic, Hungary and Slovakia took many similar measures to correct them. Hungary incurred the largest expenditure on counteracting the effects of the COVID-19 pandemic in relation to GDP. In turn, the Czech Republic spent the largest expenditure on measures to counteract the energy crisis in relation to GDP, and Hungary the least. The main sources of data were the online databases of Eurostat, the European Central Bank, NATO and Bruegel.