Majszczyk: State budget in 90 percent is a rigid budget

A high level of debt should not be surprising, because the state budget is 90 percent. Stiff budget – said Deputy Minister of Finance Hanna Majszczyk on Thursday. She added that this is the result of legal solutions that order a specific level of expenditure for specific purposes.

Answering the questions of MPs during the Thursday debate on the report on the implementation of the state budget in 2024. Deputy Minister of Finance Hanna Majszczyk referred, among others The allegations that the income was lower than planned.

– This income was caused by several factors. First of all, the base from which income was estimated for 2024 was lower. As for the income for 2023, they were lower by PLN 15 billion, which meant that the calculation of income was higher – said Deputy Minister Majszczyk. – In addition, inflation was lower than the assumed, the difference was 50 percent. Down, meanwhile, making VAT income is largely a derivative of this indicator – she added.

She emphasized that the results of the income were not influenced by “factors related to the decrease in downloadability.” She indicated that VAT income, counting year -on -year, increased by PLN 40 billion in 2024, and in 2024 the VAT gap was limited.

– The implementation of corporate income tax revenues was influenced by the fact that the profit of enterprises decreased by 15.6 percent, besides, the implementation of this tax in 2023 was lower by PLN 5.1 billion – said Majszczyk. – In addition, the annual settlement balance, which was implemented as early as 2024, was lower by PLN 6.7 billion than a year ago – she added.

She also referred to the allegation of rapid growth of public debt in 2024.

– A high level of debt should not be surprising, because the budget is 90 percent. rigid budget. We have a number of solutions in law that determine specific expenses for specific purposes. We had an increase in defense expenses, for health care, we also had high valorisation of pensions and disability pensions – said the deputy minister.

She reminded that in 2024 expenses related to the 13th and 14th pension were implemented from the state budget, not from the solidarity fund, as before. She emphasized that only this change raised the deficit by PLN 30 billion.

Last year, state income amounted to PLN 623.4 billion, and expenses PLN 834.3 billion. The deficit amounted to PLN 210.9 billion.

The tax revenues of the state amounted to PLN 555.9 billion, which means PLN 49.1 billion more than in 2023. It was mainly VAT revenues (PLN 287.7 billion), PIT (PLN 97.6 billion) and excise duty (PLN 90.3 billion). The budget was also topped with an amount of approx. PLN 14.1 billion due to the entitlement to the emission of greenhouse gas.

The state spent the most in parts of the budget regarding the Social Insurance Institution (PLN 171.3 billion), including approx. PLN 65.9 billion related to the “Family 800+” program. In the part regarding general subsidies for local governments, PLN 119.7 billion was spent, and national defense PLN 115.5 billion, i.e. PLN 18.4 billion more on annual terms.

On Thursday in the Sejm, a debate on the report on the implementation of the budget for 2024 and the report on the NBP's activities in 2024. The Public Finance Committee prepared a draft resolution in which the Sejm provides discharge to the Donald Tusk government from the implementation of the budget last year. Before voting in this matter, the Commission will assess the amendments submitted during the debate. (PAP)

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