Finance Minister Dades Kozulin said the government had approved the draft budget for next year. The deficit should be less than PLN 31 billion and public debt 56.5 per cent. GDP. In addition, the loan is calculated using the EU method, which includes loans from the Polish Development Fund and the bank Kospodorstva Krozoveko, through which Kovid assistance was paid.
According to Finance Minister Tadeusz Kosciuszko after the government meeting, the budget for next year will include revenue of PLN 481.4 billion and expenditure of PLN 512.4 billion.
The deficit is PLN 30.9 billion, which is 2.8% of GDP. – Below the 3% EU limit.
GDP is expected to increase by 4.6% in 2022. (4.9% in 2021).
Kosciuszko said the Polish economy was “doing well” and public finances were in good shape. However, he argued that the time for financial consolidation had not yet come.
Public debt is 56.5 percent. GDP. Kosciuszko said it was a public government loan, and therefore in EU terms. In the budget for 2022, we will no longer use words from Polish public finance law, but the words and terms of the European Union. Public Government. This is where all the debt comes in, with no exceptions – he said. In this loan, pledges made by Inter Alia, the Polish Development Fund for the assistance of Govt.
It averages 92% of the whole EU, and more than 100% in the Eurozone countries. – Said the head of the finance ministry.
In 2020, we saw unprecedented assistance to entrepreneurs and workers following the epidemic. However, a large part of this assistance was implemented by the bank Gospodorstva Krozoveko and the Polish Development Fund. These companies issued bonds to raise funds for the Govt Fund. However, since these units are not included in the Public Finance Act, they are not officially included in the state public debt. The debt was in the debt of the public sector.
These measures were criticized by economists and opposition politicians, who pointed to the lack of transparency of public funds. The Supreme Audit Office also pointed this out. In July NIK leader Marion Banas accused the government of “pushing spending beyond the budget.”
Why did the government do such “maneuvers”? Poland has a constitutional limit on public debt – it should not exceed 60 percent. GDP. At the time of the massive financial aid, there was a risk that this limit would be exceeded. For this reason, the government decided to “extend” some spending beyond budget law.
Deputy Finance Minister Sebastian Schusa said the state budget revenue in 2022 may have a slightly different dynamic due to the Polish agreement. After the introduction of solutions from the Polish decree that there will be fundamental deductions in personal income tax, these incomes will be almost the same – in terms of gross income. On the other hand, tax revenue – as a rule – increases overall, and personal income tax losses are slightly higher than PLN 4.2 billion – Scoosa explained.
As he said, in terms of expenditure, the budget was presented to pursue existing strategic plans and introduce new ones.
Such standard plans include the “Family 500 Plus” plan, but we have a new plan “Care Capital”, priced at PLN 3.2 billion. We are increasing the cost of health care, which will be above 5.75 per cent. GDP. I emphasize here Currently planned costs will be even higher because, after accepting solutions from the Polish agreement, additional funding will be available from the health insurance premium Scusa explained.
The budget for 2022 envisages a “high” index of pensions of 4.89 per cent, and funds to raise salaries in the budget sector to 4.4 per cent.
In accordance with the contract obligations, we provide 2.2 percent funding for the security needs of the Republic of Poland. GDP and we implement pro-investment policy He pointed out.
According to Scusa, the current part of the state budget for 2022 is a balanced budget, “we plan to spend PLN 31 billion on capital expenditure, which is actually like the expected maximum budget deficit”.
Public funds are in good shape, they are stable, Scosa said.
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