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Tuesday, October 26, 2021

Budget 2021 – draft amendment to the act. Amendments in the Sejm

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Increasing funds for health protection, including higher salaries for health care workers, as well as increases for teachers – such amendments were submitted by MPs to the 2021 budget during the second reading of the draft amendment.

In connection with the proposed amendments, the draft amendment to this year’s Budget Act was referred again to the Parliamentary Public Finance Committee.


Draft amendment to the budget for 2021

MP Henryk Kowalczyk (PiS), presenting on Thursday a report on the work of the committee to date on this draft, said that many questions from the MPs concerned the source of the revenues in the amendment, higher by almost PLN 80 billion than in the budget act passed at the beginning of this year.

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He explained that the additional funds in the budget came thanks to the responsible economic policy of the government during the COVID-19 pandemic, which prevented the rise in unemployment. – The saved jobs allowed for a very dynamic economic growth this year and hence significant income – he added.

As Kowalczyk said, the consequence of the budget change is the change in the budget-related act (both bills are being processed simultaneously – ed.). An incentive fund was introduced for the administration’s salaries, increasing them by 6%.

Speaking on behalf of his club, Kowalczyk emphasized that PLN 36 billion will be spent on additional stimulation of the economy. The politician submitted one technical amendment to the draft; it corrects the name of one of the institutes indicated in the regulations.

Budget 2021 – amendments by the opposition

Dariusz Rosati (KO) said that his party will not vote against the bill because if there are more funds, they should be spent for the benefit of Poles. Therefore, he submitted an amendment increasing funds for health protection by PLN 10 billion.

The Left also introduced amendments to the draft, according to which PLN 2 billion would be allocated to pay raises for teachers, and more than PLN 5 billion for medical services. Another amendment, as explained by Adrian Zandberg, assumes 12 percent. increases for the public budget.

Czesław Siekierski (Polish Coalition) on behalf of the club submitted an amendment increasing the deficit by PLN 7 billion and transferring PLN 3 billion from national defense. PLN 10 billion obtained in this way would be allocated to debt relief for poviat hospitals.

In turn, Mirosław Suchoń (Poland 2050) prepared amendments assuming the transfer of PLN 3 billion from national defense to health protection and allocating PLN 16 million instead of the Church Fund – for the Human Rights Defender.

National defense expenditure in the 2021 budget

Deputy Minister of National Defense Marcin Ociepa, referring to the MPs’ questions on increasing the defense budget, pointed out that we are currently witnessing a deteriorating situation in the immediate vicinity of Poland.

– Almost all NATO countries increase their defense spending. In our region, states are increasing their defense budgets by several dozen percent year on year, and in the Polish parliament, the Polish opposition is questioning the legitimacy of these expenses, he said.

– Without security, in which you have to invest constantly and, unfortunately, incur financial outlays, there will be no parliament, no hospitals, no local governments, no railroads, because there will be no Polish state, no sovereignty, summed up the deputy minister.

Receipts and expenses in the budget for 2021

On Wednesday, the Sejm hosted the first reading of the government’s draft amendment to the budget act for 2021 and the government’s draft act amending the act on special solutions for the implementation of the budget act for 2021.

In the draft amendment to the budget act for 2021 adopted by the government, it was assumed that inflation would amount to 4.3% and GDP would increase by 4.9%. In relation to the original act, the income increased by approx. PLN 78 billion, the expenditure by approx. PLN 37 billion, and the deficit was reduced by approx. PLN 42 billion.

In line with the proposal approved by the government, this year’s budget spending is expected to amount to PLN 523.37 billion (originally PLN 486.78 billion), and revenues to PLN 482.98 billion (initially PLN 404.48 billion). The budget deficit in 2021 is to amount to PLN 40.38 billion (originally it was supposed to amount to PLN 82.3 billion).

Main photo source: Shutterstock

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