They’ve done it! Govt. delivers first no-deficit budget in 30 years

'The budget of the Polish state is no longer an ATM for tax criminals,' the PM told reporters at a press conference outlining the government’s historic no-deficit budget. Radek Pietruszka/PAP

PM Mateusz Morawiecki has confirmed that next year’s budget will be deficit-free.

Speaking at a news conference the PM said: "I have the honor to present the budget for 2020. 

“This is the first budget since the transformation, for over 30 years, which is balanced and without a deficit. 

“Over the past few years, we've been putting emphasis on increasing the state's income.”

“The budget of the Polish state is no longer an ATM for tax criminals - the prime minister added.

The PM told reporters: 'This is the first budget since the transformation, for over 30 years, which is balanced and without a deficit.'Radek Pietruszka/PAP

He added that the preliminary 2020 budget foresees income and expenses balanced at PLN 429.5 billion (EUR 98.3 billion).

The first no-deficit budget in Poland’s post-communist era, the PM added that health outlays were planned at over 5 percent GDP and welfare spending at over PLN 66 billion (EUR 15.1 billion).

According to the budget assumptions adopted in June, GDP growth was projected at 3.7 percent and inflation at 2.5 percent.

According to the budget assumptions adopted in June, GDP growth was projected at 3.7 percent and inflation at 2.5 percent.Radek Pietruszka/PAP

The assumptions presumed that average employment in the national economy would increase by 0.5 percent and that at the end of 2020 the rate of registered unemployed people would drop to 5.1 percent. 

They also assumed a six percent increase of the average salary in the national economy, as well as a 3.8 percent increase in private consumption.

Private consumption, supported by optimistic expectations of Polish consumers and a good situation on the labour market, would remain the most important component of economic growth.

According to the budget assumptions adopted in June, GDP growth was projected at 3.7 percent and inflation at 2.5 percent.Radek Pietruszka/PAP

The 2020 budget will receive finance injections totalling 17.8 billion złoty from selling off mobile phone frequencies, reform of the country’s pension scheme and rights to CO2 emissions. the sale of mobile phone frequencies, rights to CO2 emissions and cash connected with the country's pension system reform.

An additional 14.9 billion złoty is expected to come from tax collection, a higher alcohol tax worth 1.1 billion złoty, a new ‘millionaire tax’ worth 1.1 billion złoty and 1.4 billion złoty from changes to the ecological tax.

An extra 5.2 billion will come from social security payments.