Poland to spend additional EUR 1.25 billion to boost investment
The government wants to spend an extra PLN 5.5 billion (EUR 1.25 billion) on COVID-19 pandemic countermeasures in 2020, according to a Wednesday press statement.
The government decided to finance tasks related to transport investments, including those implemented within the Local Government Roads Fund (FDS), co-financing of Polish Railway Lines and the construction and modernisation of railway stops.
In tune with a passed bill including anti-crisis measures, the government will increase the 2020 state budget subsidy to the FDS for co-financing investments on local government roads by PLN 3.8 billion (EUR 860 million).
The state budget will also provide PLN 1.85 billion (EUR 420 million) to raise the share capital of two state-owned rail companies.
The cabinet also approved a delay in restoring lower VAT rates. According to the bill, restoration of the 22 percent baseline rate and the 7 percent preferential rate will be possible once Poland starts applying the currently suspended spending rule, once public debt is below 43 percent of the GDP and when its cumulative negative divergence from the target sector result does not exceed 6 percent of GDP.
Lower VAT rates were to be reintroduced in 2021 after they were raised, to 23 and 8 percent, back in 2011.