14 C
London
Tuesday, May 28, 2024

Budget execution and earmarked funds. Professor Paweł Wojciechowski comments

Must read

- Advertisement -


The distortion lies in the fact that what the government or the ruling party announces is not included in the budget. There was no budget amendment last year. The deficit was at the level of twelve billion, and the total expenses, including those funds pushed beyond the budget, amounted to one hundred billion – noted in “Rozmowie Piaseckiego” on TVN24 Professor Paweł Wojciechowski, head of the program board of the Institute of Public Finance and former minister of finance. – The problem is that if extra-budgetary funds are pushed beyond the budget, it costs much more – he added.

Supreme Chamber of Control negatively assessed the implementation of the budget for 2022 by the government and drew attention to the fact that over PLN 300 billion was transferred from the state budget to specially created earmarked funds. According to NIK, this makes it impossible to exercise control over spending part of public funds.

Konrad Piasecki’s guest on Wednesday was Professor Paweł Wojciechowski, head of the program board of the Institute of Public Finance and former finance minister, who was asked about the NIK report. – The Minister of Finance has no problem, because the law was changed to ensure a mechanism of impunity, that in this system many people make decisions, but not necessarily the Minister of Finance – he replied.

– It’s not just about the state of the budget or fiscal rigors looking better, but about creating such a vehicle so that the Prime Minister personally has the so-called spending paradise, so that he can make decisions on his own. At the end, of course, they are reported in data to Eurostat, i.e. to the European Commission, but at the stage of allocation decisions, what to spend on, for example, to surprise the opposition in the election cycle, the Prime Minister can personally make these decisions, he pointed out. – We do not know what will happen, for example, before the elections, because money can always be found in these off-budget funds – he added.

- Advertisement -

Paweł Wojciechowski in “Piasecki’s Conversation”TVN24

Wojciechowski, when asked about the “pumping” of earmarked funds to gigantic proportions, confirmed that there is “flexibility” and “distortion” in this matter. – The distortion lies in the fact that what the government or the ruling party announces is not included in the budget. There was no budget amendment last year. The deficit was at the level of twelve billion, and the total expenditure, including those funds pushed beyond the budget, amounted to one hundred billion, so we had such a small part of the budget – he noted.

– But the problem is that if these extra-budgetary funds are pushed beyond the budget, it costs much more – he noted.

>> Implementation of the budget with a negative opinion. “A unique situation in the history of NIK”

To point out that citizens therefore have to pay more, Wojciechowski mentioned that in one of his publications he compared this situation to the “payday effect”. – The editor can go to the bank in a family relationship and take a normal loan, and you can go and take a payday loan without your wife’s knowledge – he gave an example, addressing the lecturer.

To the answer that in that case the money passed through the funds is like a “payday loan”, he replied: – It’s like a payday loan, which means it costs more.

– Because the court has created a mechanism of impunity, and the mechanism of impunity gives rise to the temptation of abuse to raise money more expensive only to deceive the public that supposedly there is no money, that we will not increase, for example, salaries for the budgetary sector, for the budgetary sphere, and meanwhile suddenly money can be found in a wonderful way and the Prime Minister says: and yet we will find money in the election cycle – said Wojciechowski.

Main photo source: Paweł Supernak/PAP



Source link

More articles

- Advertisement -

Latest article