The president’s signature came after Polish senators backed the financial plan in a vote at the end of last month.
Both houses of Poland's parliament have approved the government's plans to amend this year’s budget to channel more funds for the public sector, agriculture and defence amid Russia's invasion of Ukraine, according to officials.
After the revision, the budget deficit is expected to be around PLN 92 billion (EUR 20.7 billion, USD 22.8 billion), up from an initial target of PLN 68 billion, according to the finance ministry.
Government revenue is expected to total PLN 601.4 billion in 2023, with spending set at PLN 693.4 billion, under the revised financial plans greenlighted by the president, state news agency PAP reported.
Prime Minister Mateusz Morawiecki said in June that his government had decided to revise the budget "to meet some additional commitments that we have made during the year."
He mentioned a recent agreement with the Solidarity trade union on wage and social benefits; "efforts to ensure higher prices" for farmers amid "difficulties in agricultural markets;" and spending to bolster domestic arms production and to pay for weapons Poland has ordered from South Korea and the United States, the PAP news agency reported.
Morawiecki said at the time that his Cabinet was allocating PLN 14 billion in extra funds for local governments to support their day-to-day needs and facilitate investment.
Polish Prime Minister Mateusz Morawiecki holds a news conference after a Cabinet meeting in Warsaw on June 9, 2023. Photo: PAP/Paweł Supernak
The proposed budget revision ensures full financing for the government’s key social assistance programmes, officials have told reporters.
The revised budget for 2023 expects the economy to grow 0.9 percent, instead of the original 1.7 percent estimate.
Meanwhile, inflation is now targeted at 12 percent, up from the previous target of 9.8 percent, the finance ministry ha said.
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Source: IAR, PAP
