Poland expects EUR 18.7 bln deficit in 2021 - MinFin

Poland's draft budget law for 2021 envisages a deficit of PLN 82.3 bln (EUR 18.7 bln), Finance Minister Tadeusz Koscinski said on Thursday.

Poland's revenue is expected to reach PLN 403.7 bln (EUR 91.6 bln) and expenses are seen at PLN 486 bln (EUR 110.3 bln), Koscinski said after the government officially approved the draft on Thursday.

The Finance Ministry has written into the 2021 budget bill a general government deficit at 6 percent and general government debt at 64.7 percent of GDP, both calculated according to EU methodology.

The ministry also expects to receive PLN 1.5 bln (EUR 0.34 bln) from a retail tax and PLN 1.3 bln (EUR 0.29 bln) from the central bank's annual profit.

The budget is based on the assumption of a 4 pct GDP growth and 1.8 percent annual average inflation.

In this year's budget amendment, endorsed by the government last week, the deficit was set at PLN 109.3 bln (EUR 24.8 bln). It results from the assumed revenue of PLN 398.7 bln (EUR 90.5 bln) and expenditures of PLN 508.0 bln (EUR 115.3 bln)

PM Mateusz Morawiecki said on Thursday that the draft will be shown to the Social Dialogue Council, a consultative body comprising the government, trade unions and employers, on Friday.