The Polish Sejm has opened the first reading of the 2024 budget proposal. Projected revenues total PLN 682.4 billion, while planned expenditures reach PLN 866.4 billion, resulting in a deficit of PLN 184 billion. Lawmakers in the chamber expressed broad support for the year ahead as debates unfolded. The discussion highlighted government priorities and the balance between delivering public services and maintaining fiscal discipline. The overall picture shows a framework that aims to fund essential public programs while keeping a close eye on debt and long-term sustainability.
Zbigniew Konwiński of KO noted that the 2024 budget includes many requests raised during the Civic Coalition’s electoral campaign. He emphasized guaranteed increases for teachers and for the public sector, aligning with KO’s priorities. He highlighted a 30 percent raise for teachers as a central item, arguing that educators who faced political pressure should not be treated as liabilities by those in power. The discussion underscored the coalition’s commitment to education and public service wages within the budget framework.
Peter’s Dark Visions
Ryszard Petru of Poland 2050-Third Way described concerns about the current administration taking control of the nation’s finances from a position of weakness. He warned that the system remains opaque and largely outside parliamentary oversight, predicting a sizable deficit and rising debt levels. He cited a 5.1 percent deficit under EU methodology and warned that government-sector debt stood at 54.2 percent of GDP. He urged steps to restore public finances while preserving cautious momentum for improvements in the near term.
Paszyk on Returning to Normality
Krzysztof Paszyk of PSL-Trzecia Droga argued that the era of a strained budget is ending in Poland. He claimed the country is moving toward normalcy and that eight years of governance should yield disciplined budgeting. Paszyk stated that next year’s budget would strengthen economic security for Polish families. It would raise wages for teachers, expand support for the public sector, and ensure higher pay for military officers and civilian staff by 20 percent. The plan prioritizes food security, maintains zero VAT on food, and preserves healthcare funding. It also includes restoring state financing for infertility procedures as part of demographic security measures.
Tomasz Trela of New Left argued that the 2024 budget would deliver real wage growth in education, including in kindergartens. He noted allocations to local governments through a compensatory subsidy designed to fairly redistribute revenue losses and support local administration. Trela highlighted allocations for more than 800 pensions and the establishment of a 13th and 14th retirement benefit as part of the package.
Mentzen: No Money in the Budget for KO’s Promises
Sławomir Mentzen of Confederation described the draft as reflecting deteriorating state finances. He emphasized what he views as record debt, record deficits, high borrowing needs, and inflation in the EU. Mentzen argued that key proposals from the ruling coalition, including the Belka tax reform and the tax-free amount of PLN 60,000, were not included in the budget plan.
Debate Without PiS MPs
Just before the session began, PiS MPs left the plenary hall after motions to adjourn were rejected, resulting in a debate without their participation. The session continued with procedural notes documenting the timeline of the budget debate.
Poland’s Path to the Fastest-Growing EU Economies?
Finance Minister Andrzej Domański presented the draft budget with an upbeat view of Poland’s standing within the European Union’s dynamic group. He highlighted reforms in local government finance as a central element of the plan. Context from Eurostat showed Poland’s GDP rising in the third quarter of 2023, with ten EU members posting growth while several, including Germany, faced declines. Poland’s economy nonetheless grew by 0.6 percent for the year, prompting discussions about sustaining the growth trajectory. The minister highlighted a broader plan focused on fiscal discipline, social protection, and investments aimed at stabilizing and growing the Polish economy in the year ahead.
The draft budget forecasts around 3 percent GDP growth for 2024. The projection rests on stronger private consumption and higher investment, while inflation is expected to average 6.6 percent. Revenues for 2024 were projected at nearly PLN 682.4 billion. Tax revenue was expected to reach PLN 603.9 billion, up from PLN 536.8 billion in the current year. VAT receipts were anticipated at over PLN 316.4 billion, personal income tax around PLN 109.2 billion, and corporate income tax just over PLN 70 billion. Excise duties were projected to generate about PLN 89 billion, with a tax on financial institutions around PLN 6.25 billion and a PLN 4.63 billion contribution from retail taxes. A mine tax was expected to raise roughly PLN 3.7 billion. The plan aimed to align with the treasury and fiscal authorities’ projections for 2024.
These projections link to a broader plan centered on fiscal discipline, social protection, and targeted investments designed to stabilize and grow the Polish economy in the coming year. The focus remains on safeguarding essential public services while ensuring accountable budgeting and prudent debt management.