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Tuesday, October 19, 2021

Economy. The Sejm adopted an amendment to the budget

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On Friday, the Sejm passed an amendment to this year’s budget. Compared to the original budget act, revenues were increased by approximately PLN 78 billion, expenses by approximately PLN 37 billion, and the deficit was reduced by approximately PLN 42 billion. The opposition’s amendments aimed at increasing expenditure on health care were rejected.

236 deputies voted in favor of the amendment to the budget act, 65 were against and 149 abstained.

Budget amendment. The Seym rejected the opposition’s amendments

The deputies supported one editorial amendment proposed by PiS, while they rejected the opposition’s amendments, most of them concerning an increase in spending on health protection. KO proposed to increase funds for health by PLN 10 billion at the expense of, inter alia, expenditure on defense and transport, and Poland by 2050 – by PLN 3 billion. The left wanted to shift PLN 5.3 billion from national defense spending on pay rises for medical professions, and the Polish Coalition wanted to allocate PLN 3 billion to start the deleveraging process of poviat hospitals.

The KO’s amendment to support poviat hospitals with PLN 1 billion was also rejected, the Left to increase the educational subsidy for teachers’ salaries by PLN 2 billion, and Poland 2050 – to allocate PLN 16 million to the Ombudsman instead of the Church Fund.

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In the amendment to the budget act for 2021, it was assumed that inflation would amount to 4.3% and GDP would increase by 4.9%. This year’s budget expenditures are 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).

The Sejm also amended the budget-related act on Friday. It provides, inter alia, creating an additional incentive fund in state budgetary units, from which special allowances may be paid to employees of the budgetary sphere. The MPs rejected the Left’s amendments which raised the wage growth rate for employees of the public sector.

Main photo source: Shutterstock

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