COMPENDIUM CULTURAL POLICIES AND TRENDS IN EUROPE
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In 2013, public expenditure on culture and national heritage protection was 0.8% less than 2012.

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Poland/ 6. Financing of culture  

6.1 Short overview

The Polish model of financing culture is similar to other European countries: the public sector is the major but not the only patron of culture and the arts. The current level of private patronage should not, however, be seen as an alternative source of financing for culture, but as a supplementary one.

After 1989, the culture sector (including its financial problems) was moved down the ladder of government priorities. The rate of public expenditure on culture represented a low share of GDP and of total government expenditure.

In recent years public expenses (including both central, provincial, district and municipal / communal funds) for culture and national heritage protection have been constantly growing as indicated in the tables below. In 2011, state expenditure on culture and national heritage rose slightly (by 3.1% in comparison with 2010) due to the "Pact for culture". The expenditure of local authorities, however, decreased again (by 3.6% in comparison with 2010). These are data for public expenditure in total, including EU co-financing and transfers between various units and levels of government.

In 2013 public expenditure on culture and national heritage protection amounted to 8 212.7 million PLN (0.8% less than 2012 – 8 280.9 million PLN). Of this sum, the state budget expenditure constituted 18.4% whereas local self-government entities expenditure was 81.6% (in the previous year respectively 19.5% and 80.5%).

See chapter 6.2.2 for a breakdown of these funds by level of government.

Table 4:    Public expenditure on culture and heritage, including central government, and all levels of local governments, 2004-2013

Year

Public expenses for culture and national heritage protection (million PLN)

Growth in comparison with previous years

GDP share

2013

8 212.7

-0.8%

0.50%

2012

8 280.9

2.5%

0.52%

2011

8 077.3

-2.6%

0.53%

2010

8 292.9

6.3%

0.59%

2009

7 947.2

17.1%

0.58%

2008

6 798.1

14.7%

0.58%

2007

5 928.4

13.3%

0.51%

2006

5 231.6

22.0%

0.49%

2005

4 281.4

n.a.

0.44%

2004

3 807.1

n.a.

0.43%

Source:    Data provided yearly by the Polish Central Statistical Office.

Table 5:    State (central government) expenditure on culture and heritage, 2004-2013

Year

State budget expenditure for culture and national heritage (million PLN)

Share of general state budget expenditure

2013

1 632.8

0.51%

2012

1 717.0

0.54%

2011

1 493.7

0.49%

2010

1 376.9

0.50%

2009

1 592.8

0.53%

2008

1 439.4

0.53%

2007

1 313.6

0.52%

2006

1 114.5

0.50%

2005

1 032.1

0.50%

2004

1 062.5

0.54%

Source:    Data provided yearly by the Polish Central Statistical Office.

The Ministry of Culture and National Heritage provides slightly different data on the share of the general state budget. For example in the annual report on budget execution for 2010 the share equals 0.75% (and 0.73% in 2009). The differences result from including the funds dedicated to projects co-financed with EU support. This was also a matter of discussion during the preparation of the Pact for Culture. It is not clearly stated whether the declared 1% for culture (to be achieved in 2015) contains the national input in EU co-funded projects.

According to information provided by the Central Statistical Office (CSO, Culture in 2013) the largest part of the expenditure of the state budget was allocated to operation of museums – 24.2%, and to protection and preservation of monuments – 16.9%. From the self-government entities budgets, the majority of expenditure was spent on the activities of cultural centres and establishments, clubs and community centres – 29.0% and libraries – 17.8%.

There are three main areas of change in the financing of culture in Poland since 1989:

  • firstly, the withdrawal of the Ministry of Culture and National Heritage from direct management of culture. The Ministry is responsible for the most important cultural institutions, institutions co-led by the Ministry and local governments, and events with a local character;
  • secondly, there has been a shift of public funding from the central to the local administration level. Local governments are financing cultural institutions and activities from their own budget and from state subventions. They set both the level of expenditure for culture and determine their own administrative structures. In 1996, spending by the municipalities and communes on culture exceeded state budget expenditures on culture for the first time (=51% of total public spending). 1999 reforms led to the wider decentralisation of culture and tasks up to now realised by the Ministry and Voivodes were overtaken by the local government administration including the provinces and municipalities;
  • thirdly, two new goals to finance cultural activities have been introduced: to combine public and private funds and to encourage the establishment of non-governmental institutional structures. A system of earmarked funds and tax incentives for sponsors and donors has been developed which local administration and non-governmental organisations can take advantage of when undertaking state tasks. In 2001, Ministry of Culture spent in the framework of so called state Tasks transferred to non-governmental organisations around PLN 36 million (which equals 3.9% of the total state expenditure on culture). The tax solutions adopted by the Polish system are close to those adopted in EU countries.

By the end of 2002, the possibility of assigning funds from the lottery to culture was introduced. The precedent to this was the transfer of part of the income from the lotteries to the sports sector. This sector currently receives funds derived from a 20% increase in the price of lottery tickets which was introduced in the second half of 1994. As could be expected, proposals to share this income between the sports and culture sector met with strong resistance from the sports lobby since this would reduce the income allocated to it. Consequently, it was proposed to increase the price of lottery tickets by an additional 5% which the lotto player would have to bear and to divide this sum between the sports and culture sectors at a ratio of 80:20.

According to Article 47 of the Gambling Act, funds from the increase of lottery ticket prices in games are to be transferred to the Fund for the Promotion of Culture which is at the disposal of the Minister of Culture. These funds are to be allocated to support and promote the following activities:

  • international all-Polish artistic undertakings, also of an educational character;
  • literary creation and periodical press as well as activities connected with the culture of the Polish language, development of reading habits, supporting cultural periodicals with low circulation;
  • safeguarding Polish national heritage;
  • young artists; and
  • activities aimed at creating wider access to cultural goods by the disabled.

The special funds to support culture from the Gambling Act were estimated by the Budgetary Act 2004 at 120 million PLN. In 2005, the expected amount was 122 million PLN, but in contrast to the previous year, funds generated from gambling were lower – 117 054 251 PLN (147 429 325 PLN in 2004).The amount was based on estimates relating to the National Lottery (Totalizator Sportowy). Total expenditure of the Fund for the Promotion of Culture amounted to 72 647 233 PLN (this sum includes the returned funds from the balance of commitments repaid in 2004). The expenditure plan was not realised due to other commitments. The amount which was at the Fund's disposal by the end of 2005 was destined for projects which will be carried out in 2006 and 2007 (e.g. only 262 000 PLN of the planned 54 955 000 PLN was spent on the ministerial programme Promesa).

According to the provided by the Ministry of Finance annual budget execution reports the total sum spent from the Fund for the Promotion of Culture in 2010 was 205 091 000 PLN (in comparison to 172 499 000 PLN in 2009). The income of the Fund derives in almost 100% from the National Lottery, the other payments (eg. fines and interests) are insignificant. The Fund is meant to support and promote nationwide and international artistic events, literature, cultural heritage protection, young artists and creators and investments. A part of the income is transferred to the Polish Film Institute.

The Fund for the Promotion of Creativity (according to the same source) amounted to 566 000 PLN (in comparison to 529 000 PLN in the previous year). The income of the Fund comes mostly from payments from literary and music publishers. The Fund is designed for support individual artists and creators, mostly by scholarships. A part of the Fund is earmarked for social aid and cofinancing of cultural and artistic events for the blind.

Table 6:    Household spending on cultural activities and goods, 2005-2013

Year

Average yearly expenditure
(per capita) in PLN

Share of total household expenditure

Nominal value growth / decline in comparison with previous years

2013

359.16

2.8%*

n.a.

2012

428.28

3.4%

5.6%

2011

405.72

3.3%

n.a

2010

406.56

3.4%

+4.5%

2008

381.48

3.5%

+10.3%

2007

345.72

3.6%

+14.7%

2006

301.44

3.4%

+10.5%

2005

272.88

3.3%

n.a.

Source:    Central Statistical Office's publications: Culture.
*              Classification of revenues and expenditures used in the study of households has changed

According to the Central Statistical Office (publication Culture in 2009) the average yearly household expenditure per capita amounted to 956.70 PLN, which is significantly higher when compared to the previous years. This however results from adding expenditure on leisure and tourism. The amounts spent on cultural goods and services are not separated, therefore the data is incomparable.

For more information on household expenditure on culture see chapter 8.2.2.


Chapter published: 20-08-2015

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