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Monday, May 27, 2024

The public debt. Ministry of Finance in the “White Book”

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Over recent years, taxes have increased significantly, the rationality of spending funds has decreased, and public debt, according to the European Union methodology, is on the path to exceeding the threshold of 60 percent of Gross Domestic Product (GDP), we read in the White Book of Public Finances published by the Ministry of Finance on Monday.

On Monday, the Ministry of Finance published the report “The State of Polish Public Finances 2016-2023. White Book” on its website.

The ministry explained that the report was prepared “in order to show the true state of the state treasury at the end of 2023 and trigger a discussion on improving public finance management.” “Unfortunately, taxes have increased significantly in recent years, the rationality of spending funds has decreased, and public debt, according to the European Union methodology, is on the path to exceeding the threshold of 60 percent of Gross Domestic Product (GDP). This state of state finances, our common good, requires a wide public debate and making choices regarding the further use of public funds,” we read on the Ministry of Finance's website.

According to the Polish constitution, “it is prohibited to take out loans or provide financial guarantees and sureties that will result in the state public debt exceeding 3/5 (60 percent – ed.) of the value of the annual gross domestic product.” However, Polish regulations define its components differently, which is why public debt calculated according to the national methodology is lower than that calculated according to the EU methodology.

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Read also: “We haven't seen such debt since the Napoleonic Wars.”

Main photo source: Shutterstock



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