Budget deficit in 2022 will be lower than 3 pct GDP: Minister

The deficit in 2022 will be lower than 3 pct GDP, which shows that we are starting the consolidation of public finances without detriment to the public, social and investment expenditure, Finance Minister, Tadeusz Kościński said regarding the draft budget act for 2022 at Sejm, the Lower House of Parliament, on Thursday.

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“Our deficit, the complete one, covering all expenditures, used by the European Commission will be lower than 3 percent. This shows that we are starting the consolidation of public finances without harming public, social and investment expenditures,” he stressed.

The head of the Finance Ministry emphasised that the government is pursuing a policy that supports economic growth, thanks to which the Polish economy has already recovered from the losses caused by the COVID-19 pandemic this year, as shown by macroeconomic data, e.g. the fact that GDP exceeded the pre-pandemic level.

He pointed out that the draft budget prepared by the government ensures, inter alia, 5.75 percent GDP for health care, funds for key social programmes, such as the Family 500 plus programme or Good beginning (“Dobry Start”), the valorisation of retirement and disability benefits, 2.2 percent GDP for national defence, support for education and science, as well as funds for investments.

The draft budget act for 2022 assumes that next year the state budget revenues will amount to PLN 481.4 bn (EUR 105.2 bn), and expenses to PLN 512.4 bn (EUR 112 bn). The deficit is to amount to a maximum of PLN 30.9 bn (EUR 6.8 bn).

The Finance Ministry assumed that Poland’s GDP in 2022 will grow by 4.6 percent, and the average annual inflation will be at the level of 3.3 percent. The projected average monthly gross salary in the national economy will amount to PLN 5,922 (EUR 1,294) in 2022, and private consumption, in nominal terms, will increase by 9.2 percent.

At the same time, the government predicts that the deficit of the public finance sector will amount to approximately 2.8 percent GDP next year. The projected debt of the general government sector will amount to 56.6 percent GDP.