How does Poland go silently bankrupt?

niepoprawni.pl 1 week ago

The cost of handling debt increases at a staggering rate in Poland, the deficit beats historical records, and any of the state's liabilities vanish in accounting tricks. At the same time, the NFZ stands on the brink, hospitals fight for survival, and politicians convince that public finances are being repaired.

Andrzej Domański:

"...because we are repairing public finances step by step, improving their transparency. We believe that Poles and Poles have the right to know how their money is spent...”

In these 2 sentences, the Minister of Finance spoke 3 lies. Finances are not repaired, they are not transparent, and ]]>Poles have no thought how their money is actually spent.]]>

Public debt handling costs

We'll start with 30 billion zlotys. That's how much debt service cost us in 2021, which is simply: interest on borrowed funds. Now this amount is already PLN 75 billion. This means that statistically all Pole, from a newborn to a pensioner, adds PLN 2000 per year to this percentage.

But this is just the beginning of bad information. According to estimates, by 2029, the cost of debt service is expected to amount to 130 billion. By comparison, this is more than twice the yearly cost of the full 800+ programme, which costs us about 60 billion.

Let us now look at the public finance deficit, which is the difference between how much we as a state have collected from taxes and how much we spent. The situation here besides looks tragic. Only in 2025 this deficit was greater than in the erstwhile 5 years taken together!

It was the largest budget gap in Poland's past and the second largest in the full European Union. Only Romania beat us.

(No)Constitutional debt

Our politicians frequently mention to the constitution, so I will. Article 216 point 5 states as follows:

“You must not borrow or supply financial guarantees and guarantees, which will consequence in a public debt exceeding 3/5 (60 % – ed.) of the yearly gross home product value. The method of calculating the yearly gross home product and public debt shall be determined by the Act.’

This year our public debt is expected to exceed 66% of GDP. This means that there will be 6% above the limit that we have entered into the Constitution – the most crucial paper in the state. So in another words, our debt is unconstitutional. erstwhile you hear this, you most likely ask yourself, ‘If this is illegal, how has this budget been passed without any consequences?’

Politicians, like illusionists, do not like to betray their tricks. Fortunately, I am neither a magician nor a politician, so I will now tell you how our governments are "witching" citizens.

Imagine that we place Poland's debt on 2 different scales. 1 shows a score of 53.8% of GDP and the another shows 66.2%. How is that possible?

The first weight is our national measure. This is what this constitutional 60% limit refers to. However, in the same provision an interesting gate was mounted: the evidence that what precisely forms part of this debt is defined by the average law.

Our clever rulers put in the bill rules that aid lower this score. An excellent example is the removal from the Polish definition of debt of liabilities entered into by Bank Gospodarstwa Krajowego. It was in BGK that the COVID-19 Countermeasure Fund was located, from which almost 200 billion PLN went to the crisis shields. Notabene, this fund is inactive in operation present and politicians liked it very much. In fresh years, it has funded the acquisition of garbage trucks, the construction of roads, and even the payment of a coal allowance in 2022.

The Armed Forces Support Fund was besides deleted by definition. It is from this basket that we presently finance more than 30% of the spending on all these tanks, drones and helicopters.

But unfortunately, there is inactive another EU weight. This is simply a measurement which Eurostat uses and is not curious in “mary magic” in Polish laws. Their weight counts absolutely all the obligations of the state, including hidden funds in BGK or real military spending. And it is this EU weight at the end of 2026 that is expected to show alarming 66%.

Therefore, in a formal sense, everything is fine, due to the fact that the government adheres to its own, convenient definition. However, in an economical sense, Poland has a gigantic debt which has been insolently hidden in places that the Polish Constitution simply does not see.

Social programmes and bankruptcy of the NFZ

We already know that there is simply a dramatic deficiency of money in the state registry and that as a country we spend much more than we collect from taxes. But alternatively of reducing these expenditures – specified as the 800+ programme, which costs us PLN 60 billion per year, or the thirteenth and fourteenth pensions, which absorb another 31 billion – the government prefers to look for savings where it truly decides about human life.

Hospital in Lesko, in liquidation. Massively closed delivery. Closed round-the-clock troops. Lifesaving diagnostics, specified as colonoscopy, postponed by up to 3 years! The financial gap in the NFZ is almost PLN 18 billion, and over 50 region hospitals are already on the verge of bankruptcy.

Politicians know all about it. However, they realize that if social programs start, they will lose the next election. That's why no organization will. due to the fact that power is more crucial than home.