We have a huge layer cake from Brussels – more than PLN 300 billion. There are reasons for joy of successful negotiations. Yet, the rhetoric of the success of the battle for each euro cent should fast give way to reflections on how the funds will be used. Experts remind us that the growth of productivity in the economy is already zero, and EU funds are in fact social and not development expenditure.
In 2013, the Minister of Finance will prepare for taxpayers modified regulations concerning, among others, limited joint-stock partnerships, proxies and VAT deductions on cars and fuel. Maciej Grabowski, Deputy Minister of Finance, in the interview announces also the opportunity to support science and innovation with 1% of CIT.
The preferential system of social insurance for farmers is a deviation from the rule of uniform treatment of all citizens and a thorn in the flesh of reformers of public economy and finance. At the same time, it is a bastion of defence of rural politicians. The status quo in this area results in the persistently low efficiency of agriculture and discourages farmers from legal search for other sources of income.
LOT, the Polish national air carrier, wishes to apply for a considerable public aid amounting to PLN 400 million (about EUR 98 million), but needs as much as PLN 1 billion. Meanwhile, the prospect of the company's bankruptcy continues to loom large. What would its consequences be? Probably similar to those triggered by the collapse of the Belgian Sabena and the Hungarian Malev: loss of several thousand jobs, a poorer network of air connections, a drop in airports' revenues, serious problems of companies linked to LOT and possibly even more expensive airline tickets. But this is not the end of the world.
On the one hand, State Treasury property slowly gains in value, on the other, public debt is mounting rapidly. As it seems, before long, public debt might exceed the value of State Treasury property. Debt increase is common knowledge, while the value of the said property and its structure is not. Let us check whether those assets are put to effective use.
Not only the state and extraction companies count on shale gas. Also gminas where drilling started count on higher revenues of local budgets. At the current level of extraction of 4.4 billion cubic metres of gas, gminas gain PLN 16 million. Following the changes proposed by the Ministry of the Environment, their revenues may increase to over PLN 60 million.
Five steps – and not one more – is supposedly all the Minister of Health needs to reform the health care system. The problem is he presented no details, only catchy slogans. No costs of the reform were mentioned. The one thing we know for sure is that the government plans to spend PLN 100 million a year for subsidising in vitro procedures.
Local governments have abandoned their dreams of the cadastral tax for now, but they are still after higher revenues from land and buildings.They came up with geographical tax progression in order to save the budgets of communes [gmina]. Respectively, the real estate tax rates would be higher in sub-regions where GDP per capita stands above the national average.
When Prime Minister Donald Tusk addressed parliament last week he was speaking to a much wider audience than just the deputies sitting in front of him and the national public – key recipients of his message were the analysts whose recommendations guide the decisions of both equity and fixed income foreign investors.