Analysts criticise effectiveness of prosperity spending

As much as 26.4 percent of government expenditure on prosperity in Poland is ineffective, according to a report by the Polish Economic Institute (PIE), an advisory body to the government.

In its report entitled 'Economics of prosperity and happiness. Can the welfare state be a catalyst for sustainable prosperity and happiness?' PIE put Poland's level of effectiveness in spending on prosperity at 0.68 percentage points against an average of 0.81 percent in OECD (Organisation for Economic Cooperation and Development) countries.

The report's authors drew attention to the fact that among 37 OECD countries, Poland comes 20th in terms of the level of expenditure on prosperity and 29th in terms of its effectiveness.

PIE said the effectiveness of public expenditure on prosperity could be most quickly improved by co-financing environmental protection, housing an education.

"Raising public outlays by 2 percent and directing them to those fields would significantly improve the situation in Poland," PIE wrote.