Polish government approves draft budget for 2024

Poland's cabinet on Thursday approved the budget bill for 2024 based on an expected GDP growth rate of 3 percent and average annual CPI at 6.6 percent.

According to the adopted draft budget, revenues are expected to reach PLN 684.5 billion (EUR 147.7 bln) and spending is planned not to exceed PLN 849.3 billion (EUR 183.3 bln). This will produce a budget deficit of up to PLN 164.8 billion (EUR 35.58 bln).

Under the budget bill, Poland's general government deficit, an EU measure of the public budget shortfall, is expected to hit 4.5 percent of GDP in 2024.

According to the draft budget, in 2024 Poland will see economic recovery and GDP growth at 3.0 percent due to "falling inflation... positive growth of real wages... and improved consumer sentiment."

"In 2024, with the improvement of the economic situation and the indexation of the 500plus benefit to PLN 800 (EUR 173), the private consumption will reach the level of 3.3 percent," the draft said, referring to the government's flagship monthly child benefit scheme.

It also said that given the improvement of the economic situation on export markets, Poland's real growth rate of exports will increase to 3.6 percent next year from 2.0 percent expected this year.

Imports will grow at a rate similar to exports (3.9 percent) in 2024, after falling by 1.5 percent in 2023, according to the budget bill.

Under the draft budget, the registered unemployment rate is seen at 5.2 percent and the average wage growth is forecast at 9.8 percent at the end of 2024.

The bill will now go to the Sejm, the lower house of the Polish parliament.

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