23:35 27 April 2021
Government reveals to Brussels Poland's debt reaching PLN 1.5 trillion
At the end of the year, Poland's debt will reach PLN 1.48 trillion, according to a letter sent to the European Commission by our government. In two years, the PiS government increased its debt by over PLN 400 billion.
"PLN 433 billion – the debt of Poland will increase by the end of 2021 compared to 2019. This huge increase in debt is not only due to anti-crisis shields. It is largely the result of political promises that are not covered by fixed income, such as lowering the retirement age, 500 plus, 13th, and 14th retirement, " the Civic Development Forum (FOR) wrote.
Economists usually compare debt to GDP. We have limits here, our debt cannot exceed 60 percent of GDP.
"This year, according to the forecasts of the Ministry of Finance, it will be 59.99 percent of GDP. It will be almost PLN 1.5 trillion," Sławomir Dudek, former director of the macroeconomic policy department of the Ministry of Finance, currently an economist for FOR, noted
For comparison, Bulgaria has a public finance debt of 25 percent, the Czech Republic 38.1 percent, Romania 47.3 percent. Who's in front of us? For example, Hungary – 80.4 percent.
Comfort? We still have a debt-to-GDP ratio below the EU average. But we get into debt at lightning speed.
