Restrictions caused by pandemic devastate budgets of local governments

Each day of restrictions brings losses on public transport tickets, paid parking, fees for nurseries or due to the closing of sports and cultural facilities. Local governments must also take into account the decrease in income from PIT, CIT and local taxes. Loss of income means that they have already started looking for savings and cutting expenses to fill the income hole. For now, Warsaw is not planning to cut investment, but some cities may be forced to do so.

“At this stage, there are no decisions as to possible restrictions on urban investments. Tenders that were previously carried out are being carried out. It stimulates the economy and thanks to this we create jobs, which is very important during the crisis. On the other hand, we started savings and restrictions ourselves, i.e. from the Marketing Office, from promotions, all kinds of strictly commercial events or the purchase of gadgets. We have canceled many outdoor events, which, of course, can not take place at this time. We have introduced the biggest restrictions in these areas,” Karolina Gałecka, a spokeswoman for the Capital City of Warsaw, said.

As she emphasized, it is still difficult to assess what exact impact the coronavirus pandemic will have on the Warsaw budget, but certainly the city's income from PIT, CIT and public transport tickets will be lowered.

(Newseria)