Poland expects PLN 82.3 bn budget deficit in 2021: finance minister
Poland expects to finish next year with a budget deficit of PLN 82.3 billion (around EUR 18.7 billion, USD 22.1 billion), down from PLN 109.3 billion this year, Finance Minister Tadeusz Kościński said on Thursday.
Polish Finance Minister Tadeusz KościńskiPhoto: PAP/Tomasz Gzell
Under a draft budget proposal still receiving finishing touches, government revenue is expected to total PLN 403.7 billion in 2021, while expenditure is projected at PLN 486 billion, Kościński told reporters.
Earlier in the day, Prime Minister Mateusz Morawiecki said the draft was being given its „final touches” and had “practically been adopted” by his Cabinet.
Morawiecki added that the proposal would on Friday be sent for consultation with the government’s social partners as part of the Council for Social Dialogue.
The government has until September 30 to come up with the final draft of the country’s budget for next year and submit it to parliament.
Under a set of key macroeconomic indicators approved by Morawiecki’s conservative Cabinet in July, the Polish economy is expected to grow 4 percent and inflation is seen averaging at 1.8 percent next year.
Meanwhile, amid a coronavirus epidemic that has dented the economy, the government last week adopted plans to revise Poland’s 2020 budget, with the deficit this year expected to reach PLN 109.3 billion (EUR 24.9 billion, USD 29.5 billion).
Poland’s lawmakers last month voted 237 to 212, with no abstentions, to approve the government’s handling of the country’s 2019 budget.
Poland finished 2019 with a budget deficit of PLN 13.7 billion (around EUR 3.1 billion, USD 3.6 billion), roughly half of the original PLN 28.5 billion target, according to a government report.
Government revenue totaled PLN 400.5 billion in 2019, while spending stood at PLN 414.3 billion, according to the report approved by the lower house of parliament on July 24.
According to the state-run Central Statistical Office (GUS), the Polish economy expanded by 4 percent last year as a whole, but then contracted 8.2 percent in the second quarter of this year amid the coronavirus crisis.