Higher revenues in the state budget in 2021

We are facing new challenges, like the rest of the world. Measures taken by the government at the time of the COVID-19 pandemic have proved successful. The economy has returned to the path of growth. Our response is the Polish Deal – an impulse to provide momentum for our budget and economy.

– When others debated on saving jobs – we implemented the Financial Shield. It saved about 5 mln jobs and our market of entrepreneurs. This is why, before the fourth wave of the COVID-19 pandemic, our entrepreneurs are finding ways to expand to other markets and where to find employees. This is what proves the good condition of our economy here and now – the Prime Minister pointed out.

In 2021, state budget revenue will be significantly higher than was originally assumed. Data on the implementation of the state budget in recent months and current prognoses can prove it. For the entire year, revenues may be higher by up to PLN 78.5 bln than was provided for in the Budget Act.

More money for investments with the elimination of loopholes in the public finance

In the Budget Act, the government originally planned revenues of PLN 404.5 bln. However, we are currently planning revenues of nearly PLN 483 bln. To compare - in 2010 they amounted to PLN 250.3 bln. We have also increased expenditure. In the Budget Act for 2021, they amounted to PLN 486.8 bln. Now, however, we are planning expenditure at the level of PLN 523.4 bln.
The last five years have seen a reduction of over 20 taxes in Poland. Despite this, owing to a responsible budget policy, there has been an increase in tax revenue. This is the result of, among other things, the sealing of public finance loopholes and the fight against VAT mafias.

• Personal tax (PIT): PLN 71.3 bln in the amendment to the Budget Act for 2021 r. –  originally PLN 69.3 bln was planned
• Corporate income tax (CIT): PLN 49.5 bln in the amendment to the Budget Act for 2021 r. –  originally PLN 37,1 bln was planned
• VAT: PLN 214.5 bln zł in the amendment to the Budget Act for 2021 r. –  originally PLN 181 bln was planned

What is more:

• GDP will increase by 4.9 per cent, which means an increase of 0.9 per cent compared to the Budget Act for 2021
• the forecasted average monthly gross salary in the national economy is to amount to PLN 5,548, which is by ca. PLN 300 more than planned in the Budget Act for 2021

Agriculture, road infrastructure and healthcare – to what purposes will the new funds be allocated?

Because of the good budgetary situation, more resources will be allocated to, among other things:

• support for local government units

Local governments will receive additional funds amounting to PLN 12 bln, of which:

• PLN 8 bln for the implementation of their own tasks,
• PLN 4 bln for investments in waterworks and water supply and sewerage.

Importantly, recent years have seen a substantial increase in the revenues of local authorities. Total revenues in 2016-2020 amounted to nearly PLN 1.3 trillion, which means an increase by approx. 40 per cent compared to 2011-2015.

–  It is worth comparing with the funds allocated by our predecessors for the support of districts and small and medium-size towns for projects such as roads or heating networks. This comparison is devastating for our predecessors because money was leaking through the budget like through a colander – the Prime Minister noted.

roads and railways
We are planning to increase expenditure on roads and railways by approx. PLN 10.1 bln, of which PLN 3.6 bln on roads and PLN 6.4 bln on railways. The increased pace of road investments is particularly important for the local development of Poland – this means supporting local governments in their implementation of investments, primarily concerning communal and district roads. Increased spending on railways will contribute to the development of modern and environmentally friendly forms of transport. Speeding up infrastructure investments will also provide an additional impetus to the development of Polish companies in the construction sector, in particular in the conditions of recovery from difficulties related to fighting the COVID-19 pandemic.

support for people with disabilities
The government will allocate an additional PLN 800 mln to the State Fund for Rehabilitation of Disabled People (PFRON). These funds will be used for improving the quality of life of people with disabilities and for new programmes approved by the Supervisory Board of the PFRON.

agriculture
We will increase funds for farmers by around PLN 650 mln. They will be earmarked for combating infectious animal diseases, for financial aid granted by the Agency for the Restructuring and Modernisation of Agriculture to compensate for the reduced income of pork producers in the area subject to restrictions connected with combating ASF, as well as for other purposes. Support will also be granted to entities carrying out tasks in the branch of agriculture.

healthcare services
An additional PLN 1 bln will be allocated to healthcare in Poland.

The head of the government stressed that the budget for, among other institutions, the National Health Fund will be increased by PLN 800 mln - many valuations will be changed, as well as salaries. The government will also subsidise universities educating our future medical workers with the amount of PLN 200 mln. This year will therefore be a record year as far as spending on healthcare is concerned. 

public safety and fire protection
We will allocate additional PLN 2.2 bln for day-to-day functioning and investments in the Police, Border Guard and State Fire Service.