Mateusz Morawiecki states that Donald Tusk’s camp plans to withdraw from the promises made during the election campaign.
“The purpose of those who tell fairy tales about the supposedly poor state of public finances is becoming increasingly visible. Although the European Commission and the financial markets see reality positively, the spin doctors of the Civic Platform are fighting to put another lie in their plans. heads,” Prime Minister Morawiecki argues in the contribution on social media.
According to him, the opposition simply wants to withdraw from the election promises made to Poles during the campaign.
“It will soon turn out that the tax-free amount of PLN 60,000, the tax-free amount of PLN 6,000 per month (i.e. PLN 72,000 per year), a 0% loan, health insurance premium deduction, ‘grandmother’s benefits’ and other promised benefits were only ‘figures of speech’… No programme, just loose ideas about how to be beautiful, young and rich,” the Prime Minister argues.
Morawiecki: The state budget is in good shape
Later in his contribution, Morawiecki assured that the next government will inherit a budget in good condition, especially considering that in recent years the Polish economy has suffered the consequences of the pandemic, the energy crisis and Russian aggression against Ukraine.
As he adds, comparing nominal debts is “pure demagogy,” because we have to compare them with the size of the Polish economy, that is, GDP.
“Then we can clearly see from what big hole we got the public finances after the Platform government saved itself by selling Polish companies for more than PLN 58 billion and acquiring OFE for PLN 158 billion and record dividends (even more than PLN 50 billion. During the PO era, the public debt to GDP (the only measure recognized by the markets) increased by 7.5 percentage points. My government, despite the pandemic and the war, has increased the public debt to GDP has been reduced by 3.6 percentage points. Thanks to this, “Compared to other European countries, we are next to the frugal Netherlands,” he emphasizes.
The Prime Minister points out that Poland’s public financial sector debt is relatively lower than that of Germany, Austria or France. The debts of the public financial sector cover everything: the budget, local authorities, the Social Insurance Fund, funds outside the budget, i.e. the so-called ‘hidden’ debts. “By the way, it would be difficult to ‘hide’ it because we report it and the European Commission and rating agencies hold us responsible for it. This is an introduction. This data is published regularly,” he emphasizes.
“Untold Stories”
“So when such unconventional stories are told by opposition politicians with no economic background, I can understand and forgive them. But when economists, sometimes with academic degrees, talk about debt in nominal terms, which have no relation to the size of the Polish economy, they begin to wonder about the state of their economic knowledge. It is also possible that they have knowledge, but they are deliberately misleading public opinion by carrying out someone else’s political orders,” the Prime Minister added.
Morawiecki emphasized that budget revenues have more than doubled in the past eight years.
“According to EC data, we are among the leaders in tackling the VAT gap. In 2021 we managed to reduce this from 25 percent (during the time of Tusk and Rostowski) to just over 3 percent. Think about it: every fourth zloty has ended up in our common budget instead of in the pockets of VAT criminals. Today we have an almost DOUBLE increase in revenue from this tax. In addition to VAT, we also sealed the CIT – here the increase in revenue is almost THREE TIMES. The sector deficit planned for next year is well known: it amounts to 4.5 percent. This is less than the poor years of the Platform, when the budget was almost 8% short (data: Eurostat)!” – writes Morawiecki.
Morawiecki: There are three possibilities
“Telling lies about our financial situation harms Poland. I appeal to politicians and platform experts – with lies about the state of public finances you build negative sentiment on the financial markets and discourage investors. This is dangerous for all Poles, not for the laws and regulations.” Justice.
According to forecasts by the European Commission, the Polish economy will develop the best among the major European economies next year. We have record low unemployment and sales and production figures are optimistic. Today, if someone complains about the bad situation of Polish finances, there are only three possibilities:
1. Or he has no idea what he’s talking about.
2. Or he wants to be involved in the social programs of Law and Justice.
3. Or he wants to find a justification for withdrawing from his own election promises.
Soon two weeks after the elections,” the head of government wrote.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
