The basic function of agricultural areas is, according to the European Charter for Rural Areas, agriculture and preservation of the natural environment based on a well-functioning agricultural sector that operates in harmony with nature. The Council Regulation (EC) 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee was adopted in 1999. The programmes that are currently binding in the territory of Poland were developed in accordance with the EU policy expressed in the abovementioned acts and other documents concerning development of rural areas. These included: the Rural Development Programme that focused on social and environmental aspects, as well as a part of the Sectoral Operational Programme devoted to the development of rural areas, as well as restructuring and modernisation of the food sector. Based on the priorities of the Council regulation, two strategic objectives have been set: 1) Improvement of competitiveness of the agriculture and food economy, 2) Sustainable development of rural areas. Implementation of these objectives requires the support of the Common Agricultural Policy. Polish European Union membership contributed to setting its objectives and increasing the ability to subsidise economic entities, as well as develop both the food and rural areas economy.

This study conducted a comprehensive and thorough evaluation of budget expenditures on agriculture in Poland from 2004 to 2022 through the prism of fiscal policy functions (i.e., allocative, redistributive, and stabilizing functions). The volume, fundamental dynamics and structure of the budget expenditures on agriculture were meticulously analyzed, as were the impacts of those expenditures on the implementation of key objectives of agricultural policy—that is, objectives related to the level and stability of farm income and the dynamics of investment in agriculture. It was determined that redistributive expenditures dominated the structure of budget expenditures on agriculture during the post-accession period. By contrast, the shares of allocative and stabilization expenditures fluctuated widely. Moreover, agricultural budget expenditures had a positive effect on reducing the income disparity of farmers relative to other socioeconomic groups. However, the redistributive effect of budget expenditures was only strong during the initial few years after Poland acceded to the European Union. The findings of this study revealed that agricultural budget expenditures have a positive effect on the stabilization of agricultural income and the investment activity of farmers, thereby supporting development processes in agriculture.