Lower House passes bill increasing Polish Development Fund capital

The Sejm, the lower house of the Polish parliament, has approved a bill accompanying the state budget, which, among other initiatives, envisages an additional PLN 6.6 bn (EUR 1.47 bn) capital for the Polish Development Fund (PFR).

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Along with the extra capital, the fund, a state-run investment vehicle, will still be able to issue bonds.

The bill, which accompanied the 2021 budget draft legislation, also provides for an increase in funds to be allocated for wages of employees of cultural institutions. An additional PLN 20 mln (EUR 4.46 mln) to the overall amount of PLN 50 mln (EUR 11.16 mln) was earmarked for that purpose.

The bill also extends, until the end of 2021, the possibility for the state treasury to use funds from the Reprivatisation Fund to buy company shares.

According to the bill, in 2021 the government plans to keep wages in public finance sector entities at the 2020 level. It also plans to freeze the wages of judges, prosecutors, assessors and court referendaries, as well as those of retired judges and prosecutors.

A total of 233 MPs were in favour of the bill, 217 were against and one abstained.

The draft budget for 2021 envisages a deficit of PLN 82.3 bn (EUR 18.3 bn).

State revenues are to close at PLN 404.4 bn (EUR 89.9 bn) and expenditures at PLN 486.7 bn (EUR 108.2 bn). The draft envisages 4-percent GDP growth, annual inflation at 1.8 percent, and an increase in private consumption reaching 6.3 percent.

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