Poland’s 2024 budget deficit limit rises to PLN 240.3 billion amidst revenue shortfalls; opposition signals financial concerns.
On Tuesday, Poland’s government approved an amendment to the 2024 budget, raising the maximum budget deficit from PLN 184 billion to PLN 240.3 billion, citing macroeconomic challenges. Despite this adjustment, expenditure remains at PLN 866.4 billion.
Impact of Lower Inflation
Finance Minister Andrzej Domański explained that inflation has fallen below the expected 6.6% forecast, now averaging around 3.7%, which lowers VAT revenues by approximately PLN 23 billion. Additionally, revenue losses stem from reduced profits from CO2 emissions permits and lower than expected corporate tax (CIT) inflows due to weaker international conditions.
Opposition Criticizes Deficit Increase
Opposition members criticized the amendment, calling it a financial crisis for Poland. With the budgetary deficit now projected at 5.7% of GDP, opposition lawmakers warn of a looming fiscal catastrophe.
Unchanged Growth Forecast
Despite the deficit rise, the government maintains its 2025 economic growth forecast of 3.1% GDP growth, emphasizing stability in the nation’s structural budget plan.