The Parliamentary Committee on Public Finances has adopted a draft amendment to the 2024 budget law with amendments. The proposed law concerns the transfer of an additional PLN 10 billion to local governments in 2024.
The KFP discussed the draft amendment to the Special Solutions Act to implement the Budget Act 2024, the so-called budget-related act.
The proposed law deals almost entirely with the issue of transferring another PLN 10 billion to local authorities. PLN 8.2 billion should come from PIT revenues, which were originally supposed to go to the budget, while the remaining approximately PLN 1.2 billion is the result of increasing the general subsidy. The project also regulates the distribution of additional funds between individual local government units.
During the committee’s deliberations, organizational and legislative changes were submitted and adopted by the committee. The bill will now go to the second reading during the plenary session of the Sejm.
Debate
Earlier, a debate took place at the first reading of the draft amendment to the 2024 budget and the draft amendment to the budget law for this year. The PiS and Confederation clubs have filed motions to reject both projects at first reading, meaning the Sejm will have to decide their fate in a vote.
Real reasons
MP Zbigniew Kuźmiuk (PiS) argued that the real reasons for the need to change this year’s budget are completely different from those indicated by the Ministry of Finance.
The real causes of the collapse of budget revenues this year are completely different from what you show (…) It is the return to old practices that is causing us to face a collapse in budget revenues
– he emphasized.
He recalled that in the years 2008-2015, when the PO-PSL coalition was in power, budget revenues increased “only” by PLN 35 billion, i.e. by a few percent, with a cumulative inflation of 21 percent. He pointed out that in the years 2015-2023, i.e. during the PiS government and with external shocks related to the Covid-19 pandemic and the outbreak of the war in Ukraine, budget revenues were doubled, with a cumulative inflation of 44 %.
According to Kuźmiuk, the reasons for the budget amendment presented by KO include: the lack of profit payments by the National Bank of Poland, the decline in inflation or the payment of PLN 10 billion to local governments is a “classic smokescreen.” The real reason – as he emphasized – is the “collapse of tax revenues”.
You are not monitoring these revenues (…) It is clear to the naked eye that the policy of political acquiescence to tax privatization has returned. This is unacceptable
– noted the PiS politician.
The government is defending itself
The head of the Parliamentary Finance Committee, Janusz Cichoń (KO), recalled that when adopting this year’s budget, the government coalition was de facto based on the assumptions of the previous government. This was, as he said, partly due to preventing the government of Mateusz Morawiecki, which was established after the October elections, from taking power.
We have not been able to provide a complete overview of income and expenditure*
– he emphasized.
According to Cichoń, among other things, an amendment to the 2024 budget is necessary: as a result of the corruption and falsification of the budget during the PiS government. He added that the NBP president assured in the letter that the bank would pay a profit of PLN 8 billion to the budget. As a result, NBP suffered a financial loss and no payment was made.
The politician added that one of the reasons for the amendment is the lower revenues from the sale of CO2 emission allowances. He accused PiS of ‘eating’ PLN 100 billion of this, while the prices were much higher.
We are happy with the decline in inflation, because we do not want to build budget revenues at the expense of families, and you have succeeded
– added Cichoń.
The head of the Finance Commission also pointed out that the draft amendment also provides for the transfer of another PLN 10 billion to local governments so that they do not lose their financial liquidity. He explained their financial problems by the tax reforms introduced during the government period, i.e. the so-called Polish Order.
Cichoń emphasized that the amendment does not change the spending limit for this year, i.e. over PLN 866 billion, but does make changes. He argued that the final budget deficit would be lower than the assumed PLN 240 billion.
This is basically the cost of organizing the budget and public finances without the tricks and creative accounting that you (PiS – PAP) practiced.
– he concluded.
The other formations took the floor
The clubs Polska 2050 – Trzecia Droga, PSL – Trzecia Droga and Left have expressed their support for the draft amendment to the 2024 budget.
MP Sławomir Ćwik (Poland 2050 – TD) said that in his opinion the main issue affecting the level of budget revenues in 2024 is the change in planned inflation.
PiS planned an average annual inflation of 6.6 percent, while previously this was almost 12 percent in 2023.
– he emphasized.
MP Agnieszka Maria Kłopotek (PSL – TD) recalled the consequences of tax changes during the PIS government for local governments.
The proposed regulations form the basis for the transfer of more than PLN 10 billion to local authorities this year
– she noted.
Tomasz Trela (left) argued that the larger deficit in the project stems from the need to “clean up the mess left by PiS after eight years of rule”.
What does the Confederation say about this?
MP Sławomir Mentzen (Confederation), who supported the motion to reject the draft amendment, pointed out that “the planned new budget deficit will be almost a third more than planned, and state revenues will decrease by PLN 56 billion.”
You have to understand that it is entrepreneurs who produce GDP. We have to settle Polish affairs (…) it is high time for a serious state
– Mentzen appealed.
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as/PAP
Source: wPolityce