Budget amendment to bring further boost to economy: FinMin

Poland’s Finance Minister Tadeusz Kościński said that the draft amendment to the state budget for 2020 aims to obtain funds for further stimulation of the economy after the crisis caused by the SARS-CoV-2 coronavirus pandemic.

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Mr Kościński, presenting the bill to the Sejm, the lower house of parliament, said that the amendment is necessary not only because of the necessary update to the basic budget and macroeconomic parameters.

“The amendment is to give the economy a positive impulse by increasing budget expenditure, including capital expenditure,” he explained. “It is about getting funds for further stimulation of the economy so that it can return to the path of growth as soon as possible,” Mr Kościński added.

“We had to provide support to companies, funds to fight COVID-19 and protect jobs. Thanks to the spending and measures introduced by the government, the Polish economy felt the economic effects of the coronavirus to a lesser degree than most EU countries. However, it required a lot of funds and that is why we are now updating this year’s budget,” the minister emphasised.

According to the draft budget, the budget expenditure limit will be increased by PLN 72.7 bn (EUR 16.33 bn) to PLN 508 bn (EUR 114.12 bn). Budget receipts are estimated at PLN 398.7 bn (EUR 89.57 bn), and the assumed deficit will not exceed PLN 109.3 bn (EUR 24.55 bn).

The minister added that the draft assumes budget revenues will be lower than planned by PLN 36.7 bn (EUR 8.24 bn), tax revenues will fall by PLN 40.3 bn (EUR 9.05 bn), but non-tax revenues will be higher by PLN 3.6 bn (EUR 810 mln), he explained.

Mr Kościński said Poland’s GDP is expected to fall by 4.6 percent throughout 2020, compared to the originally assumed growth of 3.7 percent. In turn, employment in the national economy will fall by 2.4 percent and wages will grow by 3.5 percent.