PM: Poland will fall short of 2015 budget revenue plan

Poland will fail to meet its 2015 budget revenue plan, Prime Minister Beata Szydlo told a news conference without providing any details.

“We already know that not all assumptions when it comes to [2015] revenues will be realized,” Szydlo said.

The government is also “veryfying assmumptions for the next year” in the 2016 budget draft prepared by the previous government, the PM said.

Poland’s 2015 budget is built on PLN 297.2 bln revenues expected. 2015 deficit is assumed at PLN 46.08 bln. Revenues at end-October amounted to PLN 238.9 bln or 80.4% of the annual plan.

Poland is revising 2016 budget assumptions to accommodate the flagship policy proposals of the governing party PiS, including the new sector taxes and VAT collection improvement initiatives on the revenue side and the PLN 500 plus program on the spending side, and plans adoption as soon as possible, PM Beata Szydlo said at at press conference.

“We are taking over a budget draft from our predecessors, we will certainly need to correct it . . . so that all of these revenues we are planning from new sources. . .,” Szydlo said.

The government seeks to adopt the budget draft “as soon as possible,” she declared. A schedule of budget works is to be presented shortly.

PiS has repeatedly said it would need to revise the prior government’s 2016 budget bill to reflect its new tax and spending proposals. After early talk of keeping the budget deficit cap intact at PLN 54.62 bln, Finance Minister Pawel Szalamacha has more recently pointed to a possibility of PLN 1.0-1.5 bln increase.

The previous government planned a PLN 351.5 bln budget, based on GDP growth of 3.8% and average annual inflation at 1.7% in 2016. Budget revenues were planned at PLN 296.88 bln, including PLN 128.37 bln in VAT receipts and PLN 64 bln in excise receipts.

The new government could submit amendment to the budget bill to the lower house yet in December, Szalamacha has previously said.

ami/ maf

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