Inflation lower than assumptions in '24 reduced budget revenues by approx. PLN 25 billion

Lower by 3 pp. From the original assumptions of the Ministry of Finance, inflation in 2024 reduced the implementation of budget revenues by approx. PLN 25 billion – the Supreme Audit Office said in the speech of the assumptions of monetary policy during the UB, citing information from the Ministry of Finance.

“The average CPI index in 2024 of 3.6 percent was lower than the assumed in the budget act for 2024 by 3.0 percentage points in accordance with the explanations of the Director of the Department of Macroeconomic Policy at the Ministry of Finance (hereinafter: DPM) from a macroeconomic point of view, the impact of inflation on the revenues of the state budget is difficult to estimate. A positive impact on the nominal dynamics of domestic demand, positively affects the part of intermediate taxes, especially VAT.

The director of DPM presented the NIK respect for the impact higher than the CPI inflation assumed in the Budget Act, stating that this respect is made in a simplified form.

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In accordance with the explanations of the DPM director, assuming that the increase in prices would translate into the same wage increase (assumption of fixed real income) and that prices would only apply to final prices and services, it could be estimated that the lower inflation in 2024, compared to the forecast in the budget act at 2024, translated into tax revenues made in 2024. PLN 25.2 billion (including VAT PLN 9.0 billion, CIT PLN 8.7 billion, PIT PLN 4.8 billion) compared to the forecast in the Budget Act for 2024.

In 2024, budget revenues amounted to PLN 623.2 billion, expenses PLN 834.2 billion, and the deficit PLN 211 billion. (PAP Biznes)

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