From January to August 2021, the state budget revenues amounted to PLN 320.1 billion, and expenses – PLN 276.7 billion – said Tadeusz Kościński, Minister of Finance, Funds and Regional Policy on Thursday. This means that at the end of August, a surplus of PLN 43.4 billion was recorded in the budget. Earlier, however, economists pointed out that “the balance of the state budget has become a useless indicator of the condition of public finances”.
According to the information released on Thursday by the Ministry of Finance, in August 2021 the state budget revenues were higher by approx. PLN 8.9 billion, i.e. by 26.9 per cent. y / y, and amounted to approx. PLN 42 billion. In the period January-August 2021, the execution of state budget revenues amounted to PLN 320.1 billion and was higher by approximately PLN 51.2 billion (i.e. 19%) compared to the execution in the period January-August 2020.
– At the end of August, a surplus of PLN 43.4 billion was recorded in the budget – explained the head of the Ministry of Finance, Tadeusz Kościński.
Income from VAT, excise duty, PIT and CIT
According to the data of the Ministry of Finance VAT revenues in August this year. were higher by PLN 1.2 billion, i.e. 6.8 percent. y / y and amounted to PLN 19 billion. In January-August 2021, the performance of VAT revenues amounted to PLN 140 billion and was higher by PLN 24.9 billion (i.e. 21.6%) compared to the performance in January-August 2020.
Excise tax revenue in August this year. were higher than the revenues in August last year by PLN 0.7 billion, ie 11.2%, and amounted to PLN 7.3 billion. In the period January-August 2021, the excise tax revenue amounted to PLN 48.1 billion, i.e. more by PLN 3.1 billion (i.e. 6.8%) compared to the period January-August 2020.
State budget income from PIT in August this year. were higher by PLN 0.5 billion, i.e. by 9.2 percent. y / y, and amounted to PLN 6.1 billion. In the period of January-August 2021, the income from PIT amounted to PLN 45.8 billion and was higher by PLN 6.2 billion (i.e. by 15.7%).
State budget income from CIT in August this year. were higher by PLN 1.7 billion, i.e. by 79.1 percent. y / y, and amounted to PLN 3.9 billion.
2021 budget amendment
The current budget act for 2021 envisages that the state’s revenues in 2021 will amount to PLN 404.4 billion, and expenditures to PLN 486.7 billion, which would mean a maximum deficit of PLN 82.3 billion. Budget surplus after July this year. amounted to PLN 35.3 billion.
On Tuesday, the government adopted a draft amendment to the budget act, in which it was assumed that inflation would amount to 4.3% in annual terms, and GDP would increase by 4.9%.
The state budget revenue in 2021 was planned at the level of almost PLN 483 billion, and the state budget expenditure at PLN 523.4 billion, which means a deficit at the end of the year of PLN 40.4 billion.
“The balance of the state budget has become a useless indicator”
Earlier, after the data for the first six months of 2021, which indicated a budget surplus in excess of PLN 25 billion, economists from ING Bank Śląski commented that “the state budget balance has become a useless indicator of the condition of public finances”.
As they emphasized, “at the same time as the budget is driving up surpluses, BGK (Bank Gospodarstwa Krajowego – ed.) Is kicking up debt issues”.
“Only in 2021 it is to borrow PLN 39 billion. And it plans another 100 billion for strategic investments. Everything except the budget” – ING Bank Śląski analysts wrote in July.
Jakub Sawulski from the Polish Economic Institute is of a similar opinion. “The BP balance (state budget – ed.) Has been a useless indicator of the condition of public finances for years. During the crisis, only this problem has been aggravated by using new vehicles” – noted the economist in social media.
Main photo source: PAP / Marcin Obara