Next year's deficit results from the fact that we will spend 4.7 percent of GDP on defense next year. We know that we are at such a place in history and on the map that defense spending must be high or even very high – said Finance Minister Andrzej Domański on Thursday in “Fakty po Faktach”.
The budget act for 2025 adopted by the Sejm assumes that state revenues will amount to PLN 632.6 billion, expenses will not exceed PLN 921.6 billion, and the budget deficit will reach a maximum of PLN 289 billion, or 7.3%. GDP.
Finance Minister Andrzej Domański, asked on TVN24 what the reason for such a large amount, said that “next year's deficit results from the fact that we will spend 4.7 percent of GDP on defense next year.”
– We know that we are at such a place in history and on the map that defense spending must be high, or even very high. A growing number of countries in the European Union realize that this is the moment when they also need to start taking defense spending seriously, said the head of the Ministry of Finance.
Domański added that the government is carrying out a number of investments “in nuclear, in CPK, in railway infrastructure”, and all this “of course costs money”. He also indicated that PLN 30 billion more was planned to be spent next year National Health Fund.
Debt “from the previous government”
He also pointed out that a significant part of the expenditure is “paying off debts from the previous government.” – In next year's budget, we will repay PLN 63 billion of debts incurred by… PIS – said the Minister of Finance.
When asked whether it is not, as PiS says, that the huge deficit results from poor VAT collection and worse results of State Treasury companies, he stated that state-controlled companies, headed by Orlen, “suffer primarily from scandalous decisions made by the previous management.” – For example, regarding the investment in Olefins, which cost tens of billions of zlotys. There are many such decisions in the case of virtually every company managed by PiS nominees – he said.
In the context of revenues from tax on goods and services, the head of the Ministry of Finance said that “we have recently had very good data in terms of VAT growth.” – In November, VAT revenues were 10 percent higher. higher than in November the previous year. Since the beginning of this year, we have collected 17% more in VAT. more than in the same period of the previous year. VAT is an important tax for the Polish budget, for the ability to finance necessary expenses – said Andrzej Domański in “Fakty po Faktach”.
Main photo source: TVN24