Polish government passes 2014 budget draft with smaller deficit
September 30, 2013
PM Donald Tusk and Finance Minister Jacek Rostowski
Poland's government has approved the final version of 2014 budget draft, confirming plans for a deficit of PLN 47.7 billion, GDP growth at 2.5% and average annual inflation at 2.4%, the government press office said in a statement following the cabinet sitting.
The bill envisages the deficit dropping from the PLN 51.6 billion zloty originally planned for this year after a revamp of the country’s privately managed pension funds.
The government had earlier said it would turn back its 1999 partial privatization of the social security system, sending the portion of the private pension funds (OFE) invested in Treasury bonds (estimated at 51.5% of OFE assets) back to the social security system and making further participation in the system optional.
The government plans to raise PLN 276.9 billion revenues, while spending is expected to hit PLN 324.6 billion, the statement reads.
The figures differ marginally from PLN 276.5 billion and PLN 324.2 billion respectively assumed in the initial version of the draft adopted by the government in early September.
On the revenue side, tax receipts were left intact and are expected at PLN 247.9 billion, including PLN 115.7 billion from VAT, PLN 62.08 billion from excise, PLN 23.25 billion from Corporate Income Tax and PLN 43.7 billion from Personal Income Tax.
The government also eyes PLN 27.2 billion in non-tax revenues (up from 26.9 billion expected previously), including PLN 5.1 billion in dividend receipts, PLN 2.0 billion from customs, PLN 17.6 billion from fines, fees, interest and PLN 2.5 billion in payments from local and regional authorities. No payment from NBP profit is expected.
Polish PM Donald Tusk had earlier said that the gov’t would adopt 2014 budget draft with main figures unchanged and only minor corrections in some categories.
Small changes concern estimate of state special purpose bank BGK's receipts as well as army modernization program, Tusk said.