Poland can afford social programmes during COVID-19 pandemic: Finance Minister

“It is important that we do not cut money that goes to consumers, or increase taxes to stimulate consumption, this will allow us to exit the recession faster,” Tadeusz Kościński, the Finance Minister told commercial broadcaster Polsat News on Thursday.

Poland's 2020 general government deficit at 6.9 pct of GDP

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Mr Kościński was asked whether during the COVID-19 pandemic, the Polish state can afford to continue social programmes such as 500 plus and the 13th and 14th retirement pension. He replied that both pensioners and families with children are groups that have serious expenses, and not necessarily high income, that is why the Polish state can afford to continue social programmes.

“If we continue to push money in this direction, money will come back to the market. It is very important that we do not cut the amount of money that goes to consumers, including tax increases, so that they can use this money in the store. Then the stores will have revenues, they will pay taxes and we will be able to get out of the recession very quickly,” the head of the Finance Ministry said.

He was also asked whether the tax thresholds would change. “I think so, but this is one of a whole range of propositions put forward to the prime minister. Which one he will choose, what will be the lower threshold? What will be the upper threshold? We must wait for the PM to reveal this in the New Deal,” Mr Kościński said.