In this paper, three scenarios concerning different budget options of the reformed CAP are analysed based on the general equilibrium approach. The simulations consider a policy shock in 2014 and assess its impact until 2020. The results suggest that the changes in financing the second pillar CAP will produce only marginal effects on the economy. However, the reallocation of funds from the first to the second pillar has considerably larger negative effects on gross value added and employment in agriculture than the case of the second pillar budget reduction. On the other hand, the reallocation of funds will produce small but positive effects on the remaining sectors of the economy and the GDP.