The Prime Minister noted that the State’s financial plan for the year sets ambitious goals owing to i.a. a stable deficit of PLN 28.5 billion. The Budget Act also stipulates that the average employment in the national economy will grow by 0.5 per cent, resulting in a further reduction of unemployment to 5.6 per cent. The future budget also envisages real economic growth of 3.8 per cent.
This year's Budget Act enables the implementation of the government's social, development and investment policies in line with the Responsible Development Strategy. State budget revenues are expected to amount to PLN 387.7 billion, including ca. PLN 179.6 billion from VAT. The Prime Minister stressed that last year VAT revenue reached PLN 175 billion compared to the assumed ca. PLN 166 billion.
According to Mateusz Morawiecki, during the four years of this government VAT revenues will grow by nearly 50 per cent.
On top of this, let’s not forget about the issue of CIT collectability, mainly from international corporations explained the Prime Minister. He also stated that the growing PIT and CIT collectability shows just how effective the mechanisms introduced by the government are.
The good financial standing of Poland is also evidenced by last year’s budget deficit, which will stand at ca. PLN 10–11 billion. The deficit of the general government sector will be below 1 per cent of GDP.
This will be attributable mainly to the effective tax policy explained the Prime Minister. He added that in 2018 we met the target of reducing the share of foreign currency debt below 30 per cent, which makes public finances more resilient. The Prime Minister also highlighted that the stable economic growth rate helped reduce the unemployment rate in Poland. Since 2015, it dropped by a half, while the minimum wage increased from PLN 1,750 to PLN 2,250, i.e. by PLN 500 within the same period of the last four years.
Mateusz Morawiecki noted that Poland was the first country in over 10 years to join the group of 25 most developed economies in the world in the ranking of one of the world's major stock exchange and financial agencies, FTSE Russell. The Head of Government also recalled that over the last five quarters, the Polish economy has been growing at the rate of over 5%, i.e. twice as fast as the European average. Our country also leads in terms of social expenditure. According to the Oxfam report, we are ranked first in this category, out of 154 countries. The Family 500+ programme supported 2.46 million families in Poland, and 4.5 million students benefited from support under the Good Start programme.