Poland's budget deficit hits EUR 2.96 bln after August

The budget deficit amounted to PLN 13.3 bln (EUR 2.96 bln) after August, Deputy Finance Minister Piotr Patkowski announced on Tuesday, adding that the data suggest that Poland's economic situation is stabilising.

"The provisional data on budget execution for the past month show a further stabilisation of economic activity in Poland," Patkowski said in a press release sent to PAP.

Poland's budget revenue grew by PLN 6.1 bln (EUR 1.36 bln) in the first eight months of the year compared to the same period of 2019, the Finance Ministry data show. However, tax revenue was down PLN 7.8 bln (EUR 1.74 bln) year on year in the same period.

In January-August 2020, Value Added Tax (VAT) receipts reached PLN 115.1 bln (EUR 25.64 bln) and were down by 3.7 bln (EUR 0.82 bln), or 3.1 percent, compared to the same period of 2019.

Personal Income Tax (PIT) revenues declined by PLN 2.6 bln (EUR 0.58 bln), or 6.2 percent year on year in the same period, and reached PLN 39.6 bln (EUR 8.82 bln).

Apart from the coronavirus pandemic, PIT revenue was dented by deferred payments of advance tax and the introduction of fiscal reforms in 2019 aimed at improving the taxpayer's income situation, Patkowski explained.

The Corporate Income Tax brought PLN 27.8 bln (EUR 6.19 bln) into the state coffers in the first eight months of the year. The sum was PLN 0.2 bln (EUR 0.05 bln), or 0.8 percent lower compared to the previous year.

The excise tax generated PLN 1.6 bln (EUR 0.36 bln), or 3.4 percent more year on year in January-August, according to the Finance Ministry.