Poland has a budget surplus for now but public finances are under pressure

The state’s coffers are still swelling from revenues exceeding expenditures, but the forecasts call for a budget deficit by the end of the fiscal year

editor: Grzegorz Adamczyk
author: businessinsider.com.pl

Poland’s budget surplus in October 2022 was 27.2 billion złoty (€5.8 billion), slightly down from September, but the Ministry of Finance is confident that by the year’s end there will be a deficit.

In 2021, the deficit for the whole year was 26.4 billion złoty (€5.60 billion). The forecast for 2023 is that the deficit will reach 65 billion złoty. 

In October, income fell by 2.8 billion złoty, but for the period January-October, state income of 426 billion złoty (€90.67 billion) was up 5 percent year-over-year. State spending in the period January-October was 398.7 billion złoty (€84.87 billion). 

In terms of buoyancy of tax income, VAT values have risen 7.1 percent versus 2021. Excise duty income in 2022 is up 5.5 percent, revenue from personal income tax is up by 3.3 percent, and income from corporate income tax is up significantly over last year, 41.2 percent. 

However, pressure on the state budget is increasing as a result of higher energy prices and the need to compensate both individual and corporate consumers for those costs. Another key area in which expenditures are rising is defense. Health and education spending has also spiked as a result of the influx of refugees from Ukraine.

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