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Polish gov’t adopts plans to revise 2024 budget

29.10.2024 21:30
The Polish government has adopted plans to amend this year’s budget due to lower-than-expected value-added tax revenues and additional spending on cleanup after recent floods, officials said on Tuesday.
Polish Prime Minister Donald Tusk.
Polish Prime Minister Donald Tusk.Photo: PAP/Marcin Obara

After the revision, the budget deficit is expected to be around PLN 240.3 billion (EUR 55.5 billion, USD 56 billion), up from an initial target of PLN 184 billion, according to the finance ministry.

Government revenue is expected to total PLN 626.1 billion in 2024, with spending set at PLN 866.4 billion, under the revised financial plans approved by the government on Tuesday, state news agency PAP reported.

"The budgetary revenues are markedly lower because inflation has been below our initial projections," Prime Minister Donald Tusk told a news conference.

Additionally, he said the central bank would end the year in the red, contrary to initial expectations that it would generate a profit and contribute PLN 6 billion to public coffers.

"The National Bank of Poland is operating at a loss, so there will be no money from this source, further increasing the deficit," he said.

Tusk added that his Cabinet would allocate an extra PLN 10 billion to local governments to support their needs, which would also widen the budget gap.

The proposed budget revision ensures full financing for the government’s key social policies, including generous family allowances, officials told reporters.

The revised 2024 budget maintains an economic growth target of 3.1 percent, consistent with the original projection, according to Finance Minister Andrzej Domański.

Meanwhile, the inflation target has been revised down to 3.7 percent, a decrease from the previous target of 6.6 percent, the finance ministry said.

It added that the target for the general government deficit remained unchanged at 5.7 percent of GDP.

Poland's Finance Minister Andrzej Domański. Poland's Finance Minister Andrzej Domański. Photo: Przemysław Chmielewski/Polish Radio

(gs)

Source: PAP, IAR