Gov't aid packages contribute to rise of budget deficit in 2020
Last year's increase in the general government deficit was primarily generated by the launch of various aid packages to counter the negative impact of the Covid-19 pandemic on the economy.
"The increase in the deficit and debt last year was mainly caused by the launch, on an unprecedented scale, of activities supporting enterprises and employees in the difficult times of the pandemic," Minister of Finance Tadeusz Kościński wrote in a commentary for PAP.
Poland has already earmarked over PLN 200 billion (EUR 43 billion) in an effort to protect the national economy in the time of the pandemic.
The Central Statistical Office (GUS) announced on Thursday in a preliminary estimate that the general government deficit in 2020 amounted to 6.9 percent of GDP against 0.7 percent in 2019.
According Kościński, the government aid brought tangible benefits and the Covid-19-related recession in Poland is one of the shallowest in Europe.
He also added that Poland had managed to keep unemployment at record low levels.