The Polish government approved the budget for the next year. PLN 312 billion will come from VAT alone

On Thursday, the government adopted the draft budget act for 2024. Business owners in Poland are financing the most of it via VAT because the VAT revenues for 2024 are planned to amount to PLN 312.6 billion, government spokesman Piotr Müller announced on Thursday at a press conference.

The calculated tax revenues expected by the government. VAT revenues in 2024 were planned at PLN 312.6 billion, CIT revenues – PLN 78.3 billion, PIT revenues – PLN 108.8 billion, and revenues from excise duties are to amount to PLN 88.8 billion, government spokesman Piotr Müller said on Thursday at a press conference.

According to the information provided by the Chancellery of the Prime Minister, budget expenditures for 2024 have been planned at PLN 848 billion, and revenues will amount to PLN 683.6 billion. This means that the deficit should not exceed PLN 164.4 billion.

VAT also pays for the security expenses

As Prime Minister Morawiecki said during the Thursday press conference, next year’s spending on security will increase to over PLN 158 billion.

PLN 137 billion will be spent on social programs and shields. Spending on health care will increase to over PLN 190 billion.

“We all know that this exceeds any combined inflation rates. This can be used to finance an increase in salaries, hospital renovations and modern equipment, Morawiecki said.

Budget deficit and economic growth

According to the assumptions presented by the prime minister on Thursday, the budget deficit next year is to amount to around 4.5 percent of GDP

– Our policy is based on sound public finances and the war we are constantly fighting with VAT mafias. We also do not rely on profits from the sale of public assets, as our predecessors did, summed up Morawiecki.

The draft budget act adopted by the Council of Ministers assumes, quite optimistically, that economic growth will revive next year and will amount to 3 percent.

According to the adopted assumptions, inflation is to drop significantly. From the level of 12%, forecast as an annual average for 2023, to 6.6% in 2024. The government also assumed that the dynamics of wage growth will remain positive and will amount to almost 10% next year.

Source: Wprost


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