Polish FinMin sees deficit below 3 pct of GDP in 2022

Paweł Supernak/PAP

Poland's budget deficit will be below the EU-required 3 percent of GDP in 2022, the finance minister has said, adding the government is on the path to consolidate public finances following huge Covid pandemic spending.

Tadeusz Koscinski presented a draft 2022 budget to the lower house of parliament, the Sejm, on Thursday.

Koscinski said that "despite the application of a pro-investment and active budget policy that has helped us emerge from the crisis, we'll be meeting the Maastricht convergence rules already in 2022."

"Our deficit, in the most comprehensive terms that cover all the spending, as used by the European Commission, will be lower than 3 percent," Koscinski said. "This shows that we're starting consolidating public finance without damage to public, social and investment expenditures."

Thanks to the government's policy, the Polish economy has already made up for the losses caused by the Covid pandemic, Koscinski said.

"In the 2022 budget we are securing funds for the pro-investment measures that are needed for further stimulation of the economy and for key social programmes for Poles," the finance minister continued.

Poland will spend 5.75 percent of its GDP on healthcare and 2.2 percent of GDP on defence next year as well as continuing all its welfare programmes, according to the minister.

The government expects to receive revenues of PLN 481.4 billion (EUR 105.2 billion) next year, with spending forecast at PLN 512.4 billion (EUR 112 billion). The expected budget deficit will reach PLN 30.9 billion (EUR 6.75 billion ), or 2.8 percent of the GDP.

According to the draft budget law, Poland's economy will grow by 4.6 percent next year, with inflation at 3.3 percent.

The general government debt will reach 56.6 percent of GDP.