According to data from the Ministry of Finance, the national debt amounted to almost PLN 1.5 trillion at the end of the third quarter of the year.
On a quarterly basis, debt increased by 2.9%. i.e. with PLN 41.729 billion up to 1 trillion PLN 498.24 billion. From the end of 2023, this will be an increase of 12.8 percent.
‘So a relationship The debt-to-GDP ratio stood at 42.3% at the end of the third quarter. and increased by 0.5 percentage points compared to the previous quarter. and by 3.2 percentage points. compared to the end of 2023,” says Money.pl.
The Ministry of Finance explains that the increase in public debt in the third quarter of 2024 is due, among other things, to increasing the debt of the government subsector by more than PLN 40.412 billion, including the consolidated debt of the Ministry of Finance with more than 40 billion PLN. The ministry also emphasizes that the debt of the local government subsector has increased by more than PLN 1.317 billion.
A huge shortage
On Friday, the parliamentary majority adopted the budget law for next year. Ultimately, the financial plan for 2025 was established. Of the 442 voting members, 232 were in favor, 207 against and three abstained.
The draft budget law for 2025 assumes that next year income The budget will be close PLN 632.85 billionA expenditure PLN 921.62 billion. This means astronomical deficit of PLN 288.77 billion. The project assumes, among other things, that wages will rise by 7%, increases for the public sector, economic growth of 3.9 percent. and 5 percent inflation. Defense spending is expected to reach 4.7 percent. projected GDP.
The principles of the draft budget for 2025 were presented by the chairman of the Parliamentary Committee on Public Finances, MP Janusz Cichoń.
PiS and Konfederacja were against it
A heated debate took place during the second reading in the Sejm. PiS and Konfederacja wanted to reject the project. The principles of the draft budget for 2025 were presented by the chairman of the Parliamentary Committee on Public Finances, MP Janusz Cichoń.
During the discussion, the Law and Justice club was represented, among others, by: Member of Parliament Zbigniew Kuźmiuk, who said that the government wants to survive until the presidential elections and that then there will be cuts because the current structure of the law is completely unrealistic
MP Przemysław Wipler said the Confederation would not support a project with such a huge budget deficit. He emphasized that politicians have no right to incur debts to the state in this way, because everything will be paid for years by Polish taxpayers – the children and grandchildren of the generation of people who are taking on such high financial obligations. He explained that this is a situation where the Polish nation is at risk of going bankrupt in the future.
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.
