Poland's balanced budget calls for lower spending, higher revenue - PM

Morawiecki said the loss "will have to be compensated for" in order to keep the budget balanced, a declaration the ruling camp made in this autumn's parliamentary campaign. Wojciech Olkuśnik/PAP

Poland will keep next year's budget balanced through a reduction in spending and an increase in revenues, Prime Minister Mateusz Morawiecki said after a government meeting on Thursday.

Among the savings that the government is going to make, Morawiecki named reducing bureaucracy and streamlining administration.

On the revenue side, the prime minister said the ruling camp's recent withdrawal from a hike in social insurance premiums for high-earners could produce a deficit of between 0.4 and 0.5 percent of GDP. Morawiecki said the loss "will have to be compensated for" in order to keep the budget balanced, a declaration the the ruling camp made in this autumn's parliamentary campaign.

The social insurance hike was supposed to provide PLN 7.1 bln (EUR 1.66 bln) to the state budget in 2020.