Abstract
In recent years, the problem of reforming governmental systems has been a major issue facing Poland. This paper outlines the challenges of reforming Poland's public finance system, concentrating on the financial aspects of reform. Due to the constraints of public funding and efforts to diminish the total tax burden, reform is difficult. Yet, change in the redistribution of public revenues is absolutely essential for Polish society. We sketch the existing situation in Polish public finance and concentrate on the limitations and possible directions of the reforms. One crucial aspect of the forthcoming reforms will be a change in the revenue that local government derives from central government taxation. Reformers expect to involve local governments in the process of taxation through a new local tax and allow them to establish tax policy on both local and regional levels.
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