Poland can afford anti-inflation subsidies FinMin says

The Polish government will have spare funds at the end of the year which can be used for investment or subsidy programmes to cushion the effects of inflation, the finance minister has said.

In an interview with the Polska The Times newspaper, published on Monday, Tadeusz Koscinski said the government had assumed the state budget will end the year with a deficit of PLN 40 billion (EUR 8.66 billion).

"As of end-October, we had a surplus of about PLN 52 billion (EUR 11.25 billion)," Koscinski said. "So over the next two months we should spend PLN 90 billion, theoretically. Of course, we won't do that."

"We're creating certain financial cushions," Koscinski continued. "We would like to use them for funding investment, but if Covid-19 doesn't let go or inflation remains elevated, then we'll have money for aid."

Koscinski also warned Poland may see an average inflation of 7-8 percent next year.

Poland has been suffering from high inflation, which is now approaching 8 percent. The government has already introduced a package of subsidies for low earners as well as tax cuts to shield society from rising prices.