Szałamacha: Deficit may be increased to finance social benefits

Paweł Szałamacha, the new Finance Minister in the PiS government said that in order to introduce the party's flagship project of PLN 500 for every child, the budget deficit might be increased by PLN 1 - 1.5 billion. "I think that we will be able to reach our ambitious aims stated in the party's program and to maintain the country's financial credibility," said Szałamacha in Poznań. Speaking about introducing benefits for children, Szałamacha claimed that according to estimates by NBP, the program would cost PLN 15.5 billion annually. "In our opinion, the money can be raised by levying taxes on banks and large retailers, increasing incomes from dividends, improving VAT tax collection and perhaps increasing the budget deficit," Szałamacha said. According to earlier media reports, PiS plan to hand out PLN 500 for every child in a family whose per capita income is lower than PLN 800 and for every second and subsequent child, regardless of family income. The benefit would be paid out each month until a child reaches 18 years of age.