Government approves amended 2009 budget bill

2009-07-09



At its meeting on 7 July the government formally approved an amendment to the 2009 budget intended to close the funding shortfall brought about by the economic downturn.
With the Polish economy now expected to rise by just 0.2% in 2009, rather than by 3.7% as envisaged in the 2009 budget bill, the Finance Ministry calculates that budget revenues will be PLN 30.1bn (approx. €7bn) lower than initially estimated. To close this gap, the government aims to increase the budget deficit by PLN 9bn (€2.1bn), from PLN 18.2bn (€4.2bn) to PLN 27.2bn (€6.3bn), implement additional spending cuts (on top of those already approved in the early part of the year) and collect higher dividend pay-outs from companies in which it owns stakes. On the other hand, it will not raise taxes. Indeed, finance minister Jacek Rostowski reiterated last week that he would increase taxes for 2010 “only as a last resort”.
The bill will now be fast-tracked through Parliament. According to an official timetable approved by MPs on 8 July, the amendment is to be put to a vote in the lower house on 18 July.