Government does not plan to amend the budget so far in spite of high inflation

In 2021, inflation increased so quickly that Poles began to feel its impact on the real purchasing power of their savings and wages. In turn, the increase in real interest rates, which are to mitigate this inflation, translated into an increase in PLN mortgage installments. The government benefits from inflation through nominally higher budget revenues, but the surplus will be eaten up by the introduced anti-inflation shields. They will weaken the rise in prices in the coming months, but after their end, inflation may remain higher than it would eventually be without shields.

"At the moment, we have such a situation in the budget that, on the one hand, we have much higher incomes, partly due to inflation, but also due to the very strong economic rebound we are witnessing. On the other hand, partly these current surpluses, if you can call it that way, are consumed by expenses related to inflation shields, so at the moment we see no need to amend the budget," Łukasz Czernicki, chief economist of the Ministry of Finance, said.

On February 3, the president signed the budget law for 2022. It assumes that next year state budget revenues will amount to PLN 491.9 billion, and expenses – PLN 521.8 billion. The deficit is therefore to amount to no more than PLN 29.9 billion.

(Newseria)