Finance Minister regards main opposition’s economic proposals pyramid scheme
September 7, 2012
Finance Minister Jacek Rostowski
Polish Finance Minister Jacek Rostowski on Thursday called the economic proposals authored by main opposition party Law and Justice (PiS) and presented last Sunday a "typical pyramid scheme."
Poland's 2013 budget would be burdened with PLN 62.6 billion costs if the country implemented all the tax- and spending-related proposals by PiS, Rostowski said in a presentation on ministry's calculations on PiS proposals.
The ministry has only calculated half of all PiS's proposals, therefore the sums presented are "an absolute minimum" of what the PiS's ideas would cost, the minister said.
Income from the proposals would amount to PLN 81 billion, ministry's presentation showed.
PiS proposals included tax allowances related to children, investments, lowering disability benefit premiums and increasing non-taxable income for benefit recipients, returning to the previous retirement age of 60 for women and 65 for men. The party also proposed conducting a referendum on dropping the capital-based pension system and switching to the "solidarity based" system.
In healthcare, PiS wants to dissolve the national health fund NFZ and switch to the budget financing of healthcare.
Rostowski said that PiS's proposals are just a pyramid scheme that "is pleasant and easy to accept at the beginning, but not viable even in the mid term. As any pyramid scheme, this one is also doomed to collapse," the minister said.
Kaczynski sees the costs of economic proposals he presented earlier at some PLN 12-13.5 billion in the first year of potential implementation, while the simultaneous increase in budget revenues would nearly or completely make up for the gap, Kaczynski told broadcaster TVP1.