PMR Online access    |   tel. +48 12 340 51 00    |   E-mail: info@pmrcorporate.com
 


 

Government approves draft 2012 budget


2011-05-06



The government on 5 May approved the draft 2012 budget bill, months earlier than usual. It is poised to be enacted by the Sejm before 1 July, when Poland is due to assume the EU’s six-month rotating presidency, and will not feature on the agenda during the parliamentary elections scheduled for the autumn.

Prime Minister Donald Tusk said the key objective of the 2012 budget was to rein in spending, and that the document was “tough” but “safe for the people”. It proposes a budget deficit of PLN 35bn (approx. €8.9bn), down from PLN 40.2bn (€10.2bn) projected for this year, helped by a continued wage freeze in most of the public sector (except teachers), a new spending rule that caps increases in discretionary spending at 1% in real terms, and robust GDP growth of 4%, which is to significantly boost tax receipts. Average annual inflation is projected to be 2.8% in 2012, and wages are forecast to rise by 2.9% in real terms. The unemployment rate is to fall to 10% by the end of next year and employment in the national economy is to rise by 1.3%.

In the opinion of many commentators, the 2012 budget is not ambitious enough in tackling structural spending issues.



Browse and search in our archive »


subscribe to PMR RSS NEWS channelsSubscribe to PMR RSS NEWS channels »




Free monthly e-letter containing latest news, analyses and business information on economic situation in Poland, Russia, Bulgaria, Czech Republic, Hungary, Romania, Slovakia, Ukraine, Kazakhstan.
Relevant news
 

Useful links         Privacy Policy
Copyright © 2018 PMR. All rights reserved.

PMR is a British-American company providing market information, advice and services to international businesses interested in Central and Eastern Europe as well as other emerging markets. PMR key areas of operation include business publications (through PMR Publications), consultancy (through PMR Consulting) and market research (through PMR Research). With over fourteen years of experience, high international standards in projects and publications, highly skilled multilingual staff and a wide network of co-operating research companies and market experts, PMR is one of the largest companies of its type in the region.