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Polish gov’t adopts draft budget for 2023

30.08.2022 14:00
Poland’s government on Tuesday approved a draft budget for the next year, with Prime Minister Mateusz Morawiecki describing it as “an ambitious budget for difficult times.”
Polands Prime Minister Mateusz Morawiecki meets reporters in Warsaw on Tuesday, August 30, 2022.
Poland's Prime Minister Mateusz Morawiecki meets reporters in Warsaw on Tuesday, August 30, 2022.PAP/Marcin Obara

Morawiecki outlined the draft budget at a briefing in Warsaw, Polish state news agency PAP reported.

The PM told the media that the bill contains “various expenditures intended to make Polish families secure at this difficult time.”

He noted that with that in mind, the government had reduced the rate of personal income tax from 17 percent to 12 percent. 

“We are keeping all the existing social programmes and we’ll be responding on an ongoing basis to the society’s needs,” Morawiecki added.

Spending to reach EUR 141 bn, deficit at EUR 13.7 bn 

The PM said that budget revenue was expected to total PLN 604.4 billion (EUR 127.6 billion) in 2023, an increase of PLN 105 billion (EUR 22.2 billion) compared with the current year, thanks to “a more leak-proof tax system.”  

Meanwhile, expenditures are set to reach PLN 669 billion (EUR 141.3 billion), with the 2023 budget deficit nearing PLN 65 billion (EUR 13.7 billion), Morawiecki announced. 

Health expenditures will surpass six percent of GDP and there will also be a significant boost in military spending, the PM said, as cited by the PAP news agency.

GDP to grow at 1.7 percent, inflation to reach 9.8 percent in 2023

Meanwhile, it is assumed that GDP growth will reach 4.6 percent in 2022 and 1.7 percent in 2023, with inflation totalling 9.8 percent next year, officials said.

The government expects Poland’s GDP growth to pick up to over 3 percent in subsequent years, reporters were told.

Unemployment to reach post-1989 low at end of 2022

As Morawiecki also announced, average salaries are projected to grow by 10.1 percent in nominal terms in 2023, with unemployment at the end of 2022 falling to a post-1989 low of 2.7 percent, according to European Union methodology. 

The draft 2023 budget now heads to the Social Dialogue Council (RDS) for consultation. The cabinet has until September 30 to approve a final version of the draft budget and submit it to the Sejm (lower house of parliament), the PAP news agency reported. 


Source: PAPrp.pl