Poland increases the amount it will collect in dividends from state-owned companies
August 22, 2013
In a trend of increasing state influence over state-controlled companies, a budget revision introduced by the Polish cabinet Tuesday includes plans to increase by PLN 1bn the amount that the government will collect in dividends from state-owned companies in 2013, the Treasury Ministry told PAP Wednesday.
The government approved a revision to the 2013 budget Tuesday in order to accommodate a decrease in revenue due to economic slowdown. In the original budget plan, the government was to collect PLN 5.86bn.
The total amount of dividends to be collected from state-owned companies in the new budget is PLN 6.92bn.
The decision to increase the amount that the government will collect in dividends may be an attempt by the government to increase its influence over big businesses.
The move will likely be disconcerting to long-term investors focused on future growth but supported by short-term investors interested in more immediate payoffs.
Increasing state influence over big business is contrary to Poland's tendency for liberal and open market economic policies but typical for post-Communist countries facing slowing economies.