Polish Prime Minister Mateusz Morawiecki has lauded the economic policies of the Law and Justice (PiS) government, asserting that it has maintained the nation’s public finances in excellent shape. Following the parliamentary elections held on October 15, it appears that a new government could emerge, formed by three former opposition parties.
In response to remarks by Ludwik Kotecki, a member of the Monetary Policy Council, who raised concerns about Poland’s record budget deficit and borrowing needs, Morawiecki dismissed these statements as “demagoguery.” He clarified that the rising costs of foreign debt servicing were influenced by factors such as the pandemic, inflation, the conflict in Ukraine, and geopolitical risks, which were not unique to Poland. Morawiecki pointed out that similar challenges were faced by other countries like the Czech Republic, Italy, Romania, Lithuania, Latvia, and Slovakia.
Addressing the issue of declining tax revenues, Morawiecki acknowledged that despite government aid packages and tax cuts in Corporate Income Tax (CIT) and Personal Income Tax (PIT), the revenues were not growing as dynamically. He defended the PiS government’s record, stating that over the past eight years, they had implemented tax cuts totaling almost PLN 60 billion (EUR 13.5 billion), resulting in a remarkable 115-percent increase in state budget revenues. Morawiecki challenged critics to find another country in the world that had achieved such substantial budget growth following such significant tax reductions, citing Eurostat data to support his claim.
In response to allegations from the opposition about spending outside the state budget, Morawiecki dismissed these accusations as propaganda. He criticized the opposition for spreading misinformation and emphasized that his government was leaving Poland’s public finances in a robust and healthy condition.