Effective management of public funds allocated for the realization of the state functions

In this article the authoress discusses the Polish experience in the implementation of modern tool of public funds management – performance budget – which facilitates and improves the political decision-making process regarding reallocation of expenditure in the scope of broad category of public expenditure and methods of organizing the process. Special emphasis was placed on: – determination of the functions carried out by the state in favour of citizen`s – measuring the efficiency of performed tasks – the possibility of using this public finance management method to strategic management of the state