It is an economic flat earth to support large social programs and then be surprised that this creates a very high debt burden – says Sławomir Mentzen, an economist and one of the leaders of the Confederation.
Parliament is working on next year’s budget law. The document was drafted by Donald Tusk’s cabinet, but is largely based on assumptions made by Mateusz Morawiecki’s government.
Revenues are planned at PLN 682 billion, and expenditure at PLN 866 billion. The budget gap will therefore amount to PLN 184 billion. The project maintains funds for the 800 plus social program, as well as for the 13th and 14th pension. In addition, taxpayer money was earmarked for the “Active Parent” program announced by Donald Tusk.
Budget 2024. Mentzen: The government wants to steal taxes on a record scale
According to Sławomir Mentzen, Morawiecki’s budget project was very bad, and Tusk’s project does change the document, but in an even worse direction. The MP points out that the Platform is critical of PiS, among other things. The document predicts too high deficit and too high debt levels, and it itself predicts even higher levels.
“The draft budget of the Tusk government is proof of how bad and how dramatic the situation of Poland’s state finances is. Record debt, record deficit, record need for loans, record levels of spending, the highest inflation in all of Europe. Union. This is what you want, plunder us with taxes and contributions for a record amount,” we read on the social media of the politician and the Confederation.
“(…) You have planned a public debt of PLN 300 billion higher than before, which will exceed this magical PLN 2 trillion. Just a few years ago it seemed impossible that we would reach PLN 2 trillion. But you did it, writes Mentzen.
“The new head of the Prime Minister’s Chancellery, Jan Grabiec, said this is a budget with some gifts. And here are two observations. The first is that gifts should be given from your own pocket, not someone else’s. And the second is that I don’t know how “You think in your head that a high deficit, high debts and many gifts from PiS are bad, and an even higher deficit, even higher debts and even more gifts from the Platform Good. I understand it doesn’t,” he continues his entry.
Mentzen: The distribution spiral is also the work of PO
Mentzen points out that PO, PSL and the left are also responsible for the high debts, partly because they have supported major PiS social programs since 2015.
“Until 2015, there were no major social programs in Poland. There was a justified belief that people should basically support themselves with their own money. And then PiS changed this. It introduced 500+. I said from the beginning that 500+ wouldn’t increase our fertility, but it will increase debt and start a distribution spiral. And that’s exactly what happened. The fertility rate did not increase, our debt increased, and all subsequent governments began introducing new social programs. When PiS introduced 500+, the Platform suggested 500+ for one child, which PiS of course agreed to. Then the Platform proposed the thirteenth pension, which PiS accepted, surpassed it with the 14th pension, and when PiS proposed 800+ instead of 500+ “Not only did they agree, but you also decided that it was necessary to to introduce it half a year earlier than PiS had previously proposed, so this is your job,” Mentzen wrote, recalling that Greece entered the path in this way. to bankruptcy.
Mentzen: They support social programs and at the same time are surprised that debts are high
“(…) Each of your clubs is responsible for the current level of debt, responsible for the position we are currently in. It is also interesting that in your speeches, even a few months ago, you are outraged that we have such a high debt burden, and at the same time you all voted for it. It’s a kind of economic flat earth to support big social programs and then be surprised that it creates a very high debt burden. You might as well hit your finger with a hammer and then be indignant that your finger hurts’ – we read on.
Later in the long article, the Confederation MP explains that instead of spending money on social programs, the government should spend it on, among other things: expanding the military, energy and infrastructure. It also reminds us of the need to reduce and simplify taxes.
“(…) We have run amok, without any margin of safety and in a very good economic situation. And what will happen if the economic situation worsens? We are faced with enormous military expenditure. We are faced with enormous expenditure on the energy transformation forced by the European Union. We are faced with enormous expenditure on the energy transformation forced by the European Union. enormous expenditure due to the aging of the population. Spending on the pension and healthcare systems will increase rapidly. Unfortunately, our budget and subsequent budgets will not be prepared for this, because instead of investing and saving, we are currently eating all our money,” Mentzen writes.
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.
