Snowball of government debt rolling faster and faster

Poland’s 2027 budget should reduce the deficit to slow the rapid buildup of public debt, according to Fiscal Council chairman Sławomir Dudek. Poland’s deficit reached 7.3% of GDP last year and is expected at 6.8% this year, while debt servicing costs are rising. Dudek argues that economic growth alone cannot stabilize public finances and estimates that cumulative fiscal consolidation of about PLN 160 bln, or 4% of GDP, may be needed over several years. He criticizes both government and opposition parties for costly promises and weak long-term planning.

With EU funds set to decline, he sees little room for major tax cuts or new spending unless they are fully offset by permanent savings.

(pb.pl)