Polish Development Fund to increase capital by EUR 1.47 billion

The lower house of the Polish parliament has approved a bill channelling an extra PLN 6.6 billion (EUR 1.47 billion) into the capital of the Polish Development Fund.

Along with the extra capital, the fund, a state-run investment vehicle, will also be able to continue to issue bonds.

The bill, which was accompanying the 2021 budget draft legislation, also provides for an increase, by PLN 20 million (EUR 4.46 million) to the overall amount of PLN 50 million (EUR 11.16 million), in funds to be allocated for wages of employees of cultural institutions.

The bill also extends, until the end of 2021, the possibility for the state treasury to use funds from the Reprivatisation Fund to buy company shares.

According to the bill, in 2021 the government plans to keep wages in public finance sector entities at the 2020 level. It is also plans to freeze the wages of judges, prosecutors, assessors and court referendaries, as well as those of retired judges and prosecutors.

The draft budget for 2021 envisages a PLN 82.3-billion (EUR 18.3 billion) deficit.

State revenues are to close at PLN 404.4 billion (EUR 89.9 billion) and expenditures at PLN 486.7 billion (EUR 108.2 billion).

The draft envisages 4-percent GDP growth, annual inflation at 1.8 percent, and an increase in private consumption reaching 6.3 percent.