Demolition of public finances continues
15:34
"When it comes to the execution of the state budget – a slight deficit of around PLN 0.3 billion was recorded. It can therefore be said that the budget is almost balanced. PLN 120 billion of revenues and PLN 120 billion of expenses," Deputy Minister of Finance Sebastian Skuza praised in an interview with DGP a few days ago.
Only that the confession of the deputy finance minister is a fairy tale. PiS deliberately and deliberately led to a state where the budget situation does not tell us anything anymore. The budget does not reflect the state's finances, because state expenditures are pushed beyond the budget and the control of the Sejm. In the so-called fiscal notification, which the government has to send to the European Commission twice a year, the deficit is expected to increase from approx. PLN 49 billion in 2021 to PLN 128 billion in 2022.
"More than 72 percent of this real deficit is generated in units beyond the constitutional definition of the state budget. Public finances in Poland have become some kind of an exorbitant fiction," Dr. Sławomir Dudek, chief economist of the Civic Development Forum , a former long-term employee of the Ministry of Finance, explained.
On Friday, the yield on four-year government bonds reached as much as 7 percent.
"The current yields, however, gradually translate into the total amount of interest paid by the Ministry of Finance in a given year. Only in 2022 we will additionally pay PLN 20 billion more in the budget than assumed a dozen or so months ago by the Minister of Finance," Dudek said.
