There will be a higher budget deficit. Tusk: “It needs to be written down honestly”
The deficit is larger, it does not mean spending cuts, said Prime Minister Donald Tusk after the government meeting at which it was decided to amend this year’s budget.
During today’s meeting, the Council of Ministers adopted a draft amendment to the Budget Act for 2024. This involves a change in forecast revenues and the level of the maximum deficit. — This year’s budget deficit will be larger than previously assumed by the government – Prime Minister Donald Tusk announced during a press conference after the government meeting.
Prime Minister Tusk on a higher deficit
The Prime Minister emphasized that “we are in a rather paradoxical situation.” – This deficit is larger and it must be honestly included in the budget act, because in a sense we have managed to achieve more than expected when our predecessors prepared this budget. – explained the head of government.
– Revenues to the state budget are significantly lower because inflation is lower than assumed in the budget. That’s 3 percent. with a piece, it was supposed to be 6 percent. (…)The fact that annual inflation is clearly lower, half lower than assumed by the creators of this budget, also means lower tax revenues – he added.
Tusk emphasized that his government “inherited” the problems of local governments, which needed, among others, PLN 10 billion in drip funds. He also recalled that the previous government had planned PLN 6 billion of profit from the National Bank of Poland (NBP) in this year’s budget, while the central bank some time ago he announced that he was “at a loss”. The deficit is larger, which does not mean cutting spending. That is why we are making this budget amendment to inform you that the deficit will be larger. There is no need for any cuts – emphasized the Prime Minister.
Tusk did not indicate exactly how much the deficit would be increased. As Business Insider Polska reminds, by the end of September budget expenditure amounted to PLN 567.5 billion, which represented 65.5 percent. plan for the whole year. The deficit at the end of September amounted to PLN 107.3 billion, which represented 58.3 percent. the assumed PLN 184 billion limit for the entire year.
