The Ministry discloses estimated budget implementation. We know the amount of the deficit

The Ministry of Finance reports that in the period January-October this year. State budget revenues amounted to PLN 475.4 billion and were higher by PLN 49.5 billion (i.e. 11.6%) compared to the same period of the previous year. Ten months later, the deficit remains below 40%. planned deficit for the entire current year.

Budget deficit of PLN 36.4 billion

– It is worth emphasizing the very good and stable situation on the labor market, which translates into the good financial condition of the Social Insurance Fund and a much lower demand for supplementary financing to the Social Insurance Fund from the state budget. The subsidy to the Social Insurance Fund after October 2023 amounted to PLN 39.1 billion (a total of PLN 59.8 billion was planned for this purpose in the amended Budget Act for 2023). The above means that significant natural savings in this respect can be estimated over the entire year. The above may result in a lower maximum deficit level than planned in the amendment – we read in the statement of the Ministry of Finance.

The estimated implementation of the state budget in the period January – October 2023 in relation to the Budget Act for 2023 (after amendment) was:

• revenues PLN 475.4 billion, i.e. 79.1 percent

• expenses PLN 511.8 billion, i.e. 73.8 percent

• deficit of PLN 36.4 billion, i.e. 39.6 percent

In turn, the tax revenues of the state budget in the period January-October this year amounted to PLN 419.2 billion and were higher than in the same period last year by approximately PLN 26.3 billion (i.e. 6.7%), including:

• VAT revenues amounted to PLN 206.5 billion and were higher by approximately PLN 14.3 billion (i.e. 7.4%) compared to the performance in the period January – October 2022,

• revenues from excise tax amounted to PLN 69.9 billion and were higher by approximately PLN 4.2 billion (i.e. 6.4%) compared to the performance in the period January – October 2022,

• PIT revenues amounted to PLN 68.8 billion and were higher by approximately PLN 8.1 billion (i.e. 13.3%) compared to the performance in the period January – October 2022,

• CIT revenues amounted to PLN 58.9 billion and were lower by approximately PLN 1.3 billion (i.e. 2.1%) compared to the performance in the period January – October 2022.

The Ministry reports that in the period January – October this year. the realization of non-tax revenues amounted to PLN 54.4 billion and was higher by approximately PLN 22.7 billion (i.e. 71.6%) compared to the realization in the period January – October 2022.

Budget expenditure in the period January-October

In turn, the execution of state budget expenditure in the period January – October this year. amounted to PLN 511.8 billion, which is 73.8 percent. plan. Compared to the same period of 2022 (PLN 398.7 billion), state budget expenses were higher by PLN 113.1 billion, i.e. 28.4%.

– Higher expenditure was recorded in part 73 – Social Insurance Institution (more by approximately PLN 25.5 billion), which was related to the takeover of the task related to the payment of the 500+ benefit from local government units from June 2022. At the same time, mainly as a result of this change, lower implementation was recorded in voivodes’ budgets (less by PLN 17.2 billion). However, in terms of the subsidy transferred to the Social Insurance Fund for the payment of benefits guaranteed by the state, the implementation amounted to PLN 39.1 billion and was higher than the implementation in the same period of 2022 by PLN 8.7 billion, i.e. approximately 28.8%. – informs the ministry.

– Moreover, under part 82 – General subsidies for local government units, the implementation was higher by PLN 19.0 billion, due to the increase in expenditure on the educational part of the general subsidy. This was related to, among others, with the entry into force of the provisions of the “Act amending the Budget Act for 2023 of July 7, 2023”. increasing funds for local government units. Two additional tranches of funds have already been released, in August and September (in the total amount of approximately PLN 8.8 billion) for local governments under part 82 – General subsidies for local government units – added.

The ministry also reports that PLN 21 billion more was allocated to service the State Treasury debt, mainly as a result of the increase in the costs of servicing the domestic debt. Higher performance was also recorded in the national defense part (by PLN 27.5 billion, due to increased needs for the purchase of armaments).

– Moreover, lower implementation was recorded in expenditure on the European Union’s own funds (less by approximately PLN 2.0 billion), which was caused by the settlement of the overpayment to the EU budget due to VAT and GNI adjustments for previous years by reducing the contribution installment for the month of March and settlement in January this year. adjustments to the budget for 2022 by reducing the EU contribution for this month. After ten months of 2023, payments to the EU due to customs duties were also lower than planned – says the Ministry of Finance.