Govt. predicts ‘historic’ first balanced budget in 30 years

Minister of Finance Marian Banaś and PM Mateusz Morawiecki expected to unveil historic no-deficit budget. Radek Pietruszka/PAP

The government is planning to balance its budget without deficit for the first time in 30 years.

On Monday, the Rzeczpospolita daily quoted government sources saying that the 2020 budget could be the first totally balanced Polish budget in the post-communist era, meaning that Poland will not have to borrow money to finance its expenses.

According to Rzezczpospolita newspaper, the 2020 budget could be the first totally balanced since the fall of communism.TFN

According to the paper, the 2020 budget would receive finance injections totalling 17.8 billion złoty from selling off mobile phone frequencies, reform of the country’s pension scheme and rights to CO2 emissions. 

Responding to the newspaper’s claims, the PM’s aide Michał Dworczyk said: “It would certainly be a historic moment if it happened.”Wojciech Olkuśnik/PAP

An additional 14.9 billion złoty is said will come from tax collection, a higher alcohol tax worth 1.1 billion złoty, a new ‘millionaire tax’ worth 1.1 billion złoty and 1.4 billion złoty from changes to the ecological tax.

An extra 5.2 billion coming from social security payments.

Responding to the newspaper’s claims, the PM’s aide Michał Dworczyk said: “It would certainly be a historic moment if it happened, if these reports were confirmed, because this would be the first balanced budget since the [post-communist] transformation."

Part of the money will come from a higher alcohol tax worth 1.1 billion złoty.Marcin Bednarski/PAP

On Tuesday, the government has its regular weekly meeting where it is expected to discuss next year’s budget issues.

The 2020 budget estimates the country’s growth next year will be 3.7 percent, while consumer prices are expected to grow by 2.5 percent.