Budget has liquidity despite crisis relief spending - Polish FinMin

Leszek Szymański/PAP

The Polish budget's liquidity is positive despite the extraordinary relief and support spending due to the coronavirus crisis, Finance Minister Tadeusz Koscinski told the Gazeta Polska Codziennie newspaper.

On the subject of the prime minister's prediction of a budget deficit of between 5 and 8 percent due to the crisis, instead of the government's earlier no-deficit plan, Koscinski said the levels of spending and revenues will not be available until the end of June.

The minister revealed plans to introduce instalment payments for some taxes, as requested by crisis-stricken businesses.

"However, I would like to stress that the budget liquidity condition is favourable despite financing the needs resulting from shielding and supporting activities," Koscinski said, adding that at the end of May, Poland had some PLN 100 bln (EUR 22.49 bln) on budget accounts and had financed 100 percent of the country's total borrowing needs for 2020.

Commenting on government plans to suspend the official budget spending caps, Koscinski said that Poland's fiscal situation was beneficial as the country's public debt had gone down by more than 8 percent of GDP since 2016.