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Poland’s budget deficit hits PLN 36.42 billion in October

November 26, 2023
in General
Poland’s budget deficit hits PLN 36.42 billion in October
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Poland's budget deficit hits PLN 36.42 billion in October

WARSAW – Poland’s state budget deficit reached PLN 36.42 billion ($8.33 billion) at the end of October, with the country’s fiscal revenues marking a significant increase compared to the previous year. The Finance Ministry reported that from January to October, tax revenues rose by roughly PLN 26.3 billion, buoyed by a robust labor market which has resulted in greater stability for the Social Insurance Fund (ZUS), reducing its reliance on state funding.

The revenue surge to PLN 475.4 billion represents nearly two-fifths of Poland’s annual target, showcasing the country’s economic resilience amid global challenges. This uptick was primarily driven by increases in Value-Added Tax (VAT) and Personal Income Tax (PIT), despite a slight decline in corporate tax income.

On the expenditure side, totaling PLN 511.8 billion, there was a noticeable rise due to the centralization of the “500+” family support program from local governments and increased defense spending, particularly on armaments purchases. Additionally, local government subsidies experienced growth following legislative changes that included enhanced educational funding.

One area of concern is the escalating domestic debt servicing costs, which have contributed to higher State Treasury debt expenditures. Conversely, EU-related expenditures decreased after budget adjustments related to contributions based on VAT and Gross National Income (GNI) from prior years.

The Polish government has been proactive in managing its finances, as evidenced by the lower-than-planned subsidies required for the Social Insurance Fund due to the strong labor market. This financial prudence comes at a time when Poland, like many other nations, faces economic pressures from various external factors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Investing.com – https://www.investing.com/news/economy/polands-budget-deficit-hits-pln-3642-billion-in-october-93CH-3243113

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