The biggest budget deficit in Poland's past in 2024
The Council of Ministers adopted a draft budget for 2024. The most shocking point is the planned budget deficit of up to PLN 164.8 billion. This is an astronomical consequence beating the erstwhile evidence holder, planned budget deficit for 2021 (PLN 82.3 billion) up to 82.5 billion PLN, or more than twice.
The planned budget deficit on the basis of information provided by www.gov.pl, own development.
Budget for 2024
According to the draft adopted by the Council of Ministers, the gross of the State budget will be PLN 683 billion, expenditure PLN 848.3 billion. The biggest sources of income will be VAT, excise work and PIT. Main expenditure by article www.gov.pl These include:
– PLN 190.9 billion for wellness (including NFZ),
– PLN 158,9 billion for defence (including the Armed Forces Support Fund),
– PLN 76.6 billion for education subsidies,
– the value of pensions,
– financing the payment of the 13th and 14th pensions,
– PLN 63 billion for “Family 800+”,
– PLN 1.4 billion to supply a good start,
– PLN 2.4 billion for household Care Capital.
Particular attention should be paid to defence spending, which may already exceed the 5% of GDP announced by the politicians of the United Right for a long time.
Comparison with this year
The overall comparison of planned expenditure and gross in the years 2023 and 2024 should be started. Next year the government is to have at their disposal 79 billion PLN more than in this year (PLN 604 billion in 2023), however, expenditure has increase by PLN 175.8 billion (PLN 672.5 billion in 2023), the largest origin of income in both years is, of course, VAT, projected for PLN 272.9 billion This year. The most resources in both 2023 and 2024 will be allocated to wellness care, this amount would already exceed 6% in this year, but this is not the case, and according to estimates, among others, of Eurostat, or the Polish Statistical Office in 2023, only 5.11% of GDP will be allocated to this purpose. The second largest expenditure in the years compared, besides unchanged, is allocated to defence. They will increase from Okay. PLN 130 billion in 2023 to the previously mentioned PLN 158,9 billion in 2024.
Budget deficit based on GUS reports - Communication on general government deficit and debt in 2014-2022, own development.
Summary
When comparing budget projects from the 1920s and 2024s, you can see an interesting thing. This is the way in which expenditure is reported, where the percent of GDP is much little utilized in the task next year, and where the exact amount is given. This may indicate the government's uncertainty about the state of the Polish economy. The final budget deficit in 2024 may be estimated at PLN 182,3 billion, given that since 2014 (not including 2020 due to the beginning of the Covid-19 pandemic) the deficit at the end of the year was on average 11 percent points higher than that forecast.
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