After the revision, the budget deficit is expected to be around PLN 92 billion (EUR 20.7 billion, USD 22.3 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 approved by the government on Friday, state news agency PAP reported.
“We have revised the budget to meet some additional commitments that we have made during the year," Prime Minister Mateusz Morawiecki told a news conference on Friday.
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 his Cabinet was also allocating PLN 14 billion in extra funds for local governments to support their day-to-day needs and facilitate investment.
The proposed budget revision ensures full financing for the government’s key social assistance programmes, officials 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 said.
(gs)
Source: IAR, PAP