Morawiecki: sources of financing for the New 5 social plan

Prime Minister presented the sources of financing of the government’s new social program. Funds for financing the so-called “The New Five Program” will come from reducing the VAT gap (financial effect: PLN 4-6 billion annually), reducing the CIT gap (PLN 4-6 billion annually), digitizing public administration (PLN 2-3 billion annually), reducing inefficiencies in the National Health Fund NFZ and Social Security Fund FUS (PLN 3-5 billion annually), a fiscal impulse (PLN 3-6 billion annually) and taxation of digital giants (about PLN 1 billion per year). In addition, lower taxes on labor, decreased CIT, limiting smuggling and cross-border fraud are expected to bring in about PLN 14-24 billion within 2-3 years.

According to the Prime Minister, Poland will definitely not exceed the budget deficit limit set under the EU convergence criteria (i.e. 3 percent of GDP).