The Budget Debate and Public Finance in Poland
At a Friday gathering in Spała, PiS President Jarosław Kaczyński spoke about the government’s response to opposition promises. He argued that solving the financial challenges would require not only a second budget but also a second public finances framework. He stressed that the opposition’s plans could not be implemented without expanding fiscal space and rethinking revenue and expenditure across multiple fiscal layers.
Kaczyński claimed there is no gap in the 2024 budget that has been adopted but not yet enacted, provided that the budget remains free from what he described as irresponsible items. He noted that the government had previously announced an increase in the so‑called 800 plus program but suggested that no further salary changes had been disclosed at that time.
According to him, the 2024 budget was prepared with common sense, whereas other positions were labeled as deceptive or misleading to the public. He characterized the broader opposition messages as a sequence of false promises across all three opposition parties.
On September 29, the government presented its draft budget for 2024. It was projected that state revenues would reach 684.5 billion PLN, with total expenditure capped at 849.3 billion PLN. This setup implied a budget deficit not exceeding 164.8 billion PLN. By EU methodology, the public finance sector deficit was estimated at around 4.5 percent of GDP.
Among the statements highlighted by Kaczyński was an observation about Poland’s electoral landscape and the need to secure victory in a reorganized Poland. He acknowledged that some mistakes had been made in the past and warned about risks associated with potential new European treaty provisions that could shift control outside national borders, describing such a scenario as a threat to national sovereignty.
In Spała, he declared that the state of the economy was robust. He rejected the idea of a 6 percent increase in education spending as economically impractical unless accompanied by heavy tax burdens that would harm growth. He asserted that several opposition campaign pledges were completely out of touch with reality and warned that such promises would be difficult to finance without destabilizing the economy.
He also argued that high tax levels would be necessary only if the state aimed to fund expansive programs without corresponding revenue streams. He warned that such steps could undermine the broader economic framework. He emphasized that financial resources would not be obtainable through magic; money would require either new taxes or new forms of revenue, and fiscal prudence was essential to maintain stability.
When discussing the increase of the tax exemption to 60,000 PLN, Kaczyński noted that the cost would amount to around 60 billion PLN. If such an increase were pursued, it would not only necessitate a second budget but also a second public finances sphere. He argued that the draft budget had been presented in full as a response to current realities, and that certain proposals had not been adopted because they did not reflect the actual situation.
The deputy prime minister contrasted the 4.5 percent deficit forecast with the 7.9 percent deficit seen during the tenure of the previous government under Prime Minister Donald Tusk. He pointed out that higher deficits had existed in the past and argued that the current deficit, when kept under control and paired with responsible actions, did not pose an immediate danger. He urged that caution be exercised and warned against irresponsible moves that could destabilize the economy.
In closing remarks, the discussion touched on the broader outlook for economic policy, the role of public finances, and the challenges involved in balancing ambitious social programs with sustainable budgetary discipline. The conversation reflected ongoing debates about how to align electoral promises with the fiscal capacity of the state, and it underscored a commitment to addressing the public’s expectations through careful budgeting and prudent financial management. This overview draws from statements reported by sources covering the Spała event and related political discourse, attributing the summarized positions to the speaker and party involved.
Source: wPolityce