#YearOfSupport: Highlights of the government's activities in 2022
30.12.2022
Increasing the strength of the Polish army in the wake of the outbreak of war in Ukraine, efficiently welcoming and providing support to Ukrainian refugees, fighting Putin- and Gazprom-induced inflation, protecting Poles from the crisis and strengthening our country's energy security - these were the most important activities that the government implemented in 2022. It was another year of fighting challenges and, at the same time, a year marked by support for Polish families.
Increasing the strength of the Polish army and the security of Poles
For years, the Polish government has warned against Russian imperialism and successively increased the security of our country. These measures further accelerated after the Russian attack on sovereign Ukraine, in February 2022.
In order to secure our country, we have decided that in 2023, spending on the army will increase to 3 per cent of GDP This means that Poland will be one of NATO's leaders when it comes to spending on armaments. Among the contracts already signed to reinforce our army, there are: American ABRAMS tanks, Piorun missile sets, AW 149 type multi-role helicopters, ZSSW-30 remotely operated turret systems, K2 tanks, K9 cannon howitzers and FA-50 aircraft. In December 2022, the Polish army has already taken delivery of the first state-of-the-art K2 tanks.
We have also built a protective barrier on the Polish-Belarusian border of the European Union, which strengthens our security. An electronic barrier with the Kaliningrad region is also under construction.
Investing in Poland's energy security and development
In 2022, we completed strategic infrastructure investments that affect the security and development of our country. Their aim is to become fully independent from Russia, especially in terms of raw material supplies.
In September, we launched the Baltic Pipe gas transmission. Thanks to supplies from Norwegian deposits, the era of Russian domination in the gas sphere, marked by blackmail, threats and extortion from Moscow, has come to an end. However, Baltic Pipe is not the only investment in our energy security. In May, we commissioned a gas connection between Poland and Lithuania, and in August one between Poland and Slovakia.
In order to end our country's dependence on Russia, we also opened a shipping channel through the Vistula Spit. As a result, for the first time in Poland's post-war history, it is possible to freely enter the Vistula Lagoon without having to pass through Russia's territorial waters.
The need to become permanently independent of energy supplies and their carriers from Russia requires the construction of the first nuclear power plant in Poland to be brought forward. That is why in November we adopted a resolution to build such a power plant. It will be based on the proven and safe American AP1000 reactor technology.
Resolution on the construction of large-scale nuclear power plants in the Republic of Poland
The development of our country also depends on investments made by municipalities, poviats or cities. That is why we continued to implement the Government Strategic Investment Programme in 2022. Under the second edition of the programme, more than PLN 30 billion went to Student Governments. Student Governments also received an additional PLN 13.7 billion in 2022. These are funds that can be used to cover current expenditure, but also for investment purposes.
Government Strategic Investment Programme
We also actively support the development of infrastructure in our country - road and rail. In 2022, among other things, we commissioned over 300 km of new roads and rebuilt or built from scratch 23 railway stations. In December, we adopted the next edition of the Government's National Roads Construction Programme, which provides for the construction of more than 2,500 km of new roads - motorways and expressways.
More than PLN 290 billion for new roads under the National Roads Construction Programme
Protecting Polish families
The year 2022 was marked by the fight against global inflation, caused by Putin and Gazprom. That is why we took proactive measures and created a comprehensive package of solutions to support Polish families.
- We have started-up support for Borrowers, the so-called credit holidays. This is assistance for Poles in repaying mortgages in PLN. This means up to 8 months without repaying loan instalments.
- Anti-inflation support, the Government's Anti-Inflation Shield, through which we have reduced taxes on, among other things, basic food products, gas, fuel, fertilisers and electricity. We have also decided to extend the zero VAT rate on basic food products at least through the first half of 2023.
- Energy support, the Government's Energy Shield, including:
- shielding allowance,
- carbon allowance,
- an additive for fuels other than coal,
- allowance for vulnerable entities that are not connected to the gas network.
- We have also created a compensated heat mechanism. Heat generators are obliged to set the price of heat.
- We have decided to freeze gas prices in 2023. Next year, we will introduce a maximum price for natural gas at a node of around PLN 200/MWh. We will also freeze distribution tariffs.
- We also addressed rising electricity prices. No price increase will apply up to a limit of 2 MWh for households. For people with disabilities, it will be 2.6 MWh per year, and large families (with the Large Family Card) and agricultural households - 3 MWh per year. In addition to the guaranteed price, we have also provided an electricity allowance of PLN 1,000 - for those heating mainly with electricity (including heat pumps) and PLN 1,500 when annual electricity consumption exceeds 5 MWh.
- We have also introduced capped energy prices. Electricity prices within the cap will be settled in 2023 at the frozen energy prices of 2022. Above the cap, maximum prices will apply: 693 PLN/MWH - for household consumers and 785 PLN/MWH - for micro, small and medium-sized entrepreneurs and Student Government and sensitive entities.
Details of the government's Shield
The energy crisis requires the mobilisation of the entire administration - not only the government, but also local authorities. That is why, in autumn 2022, we created an effective mechanism for distributing coal among citizens. Thanks to this, coal, at a maximum price of PLN 2,000 per tonne, goes directly to the Poles.
Distribution of coal to households by municipalities
We have also paid the 13th and 14th pensions in 2022 and introduced a historic tax cut for all. From 1 July 2022, PIT is 12%, with a high tax-free amount of PLN 30,000 and an increased tax threshold of up to PLN 120,000.
In difficult times of crisis, we are particularly mindful of the lowest paid Personnel. That is why we have decided on a record increase of the minimum wage in 2022 in 2023. As of 1 January, it will amount to PLN 2709.48 'on hand' - compared to 2015, this is an increase of nearly 111 per cent. On the other hand, as of 1 July 2023, the minimum wage 'on hand' will be raised to PLN 2783.86. Compared to 2015, this is an increase of more than 116 per cent.
Poland is a leader in providing aid to Ukraine
Poland and Poles passed the 2022 solidarity test - we extended a helping hand to refugees fleeing war in Ukraine. Efficient and swift support meant that many people found safe shelter in our country. We have provided nearly PLN 6 billion to help war refugees. We also drafted a law on assistance to Ukrainian citizens, which provided refugees with legal residence in Poland, access to health care, the right to education and the right to work.
PM: Ukrainian citizens fleeing war will be safe in Poland
Poland has also been one of the leaders in supporting Ukraine. Since the beginning of the war, we have donated military equipment worth more than $2 billion. We are also actively supporting Ukraine internationally. In March 2022, Prime Minister Mateusz Morawiecki, together with Deputy Prime Minister Jaroslaw Kaczynski and the Prime Ministers of the Czech Republic and Slovenia, were the first European leaders to visit Kyiv, which was under attack.
The head of the Polish government has also made dozens of foreign visits that have motivated countries across Europe to help our close neighbours. Prime Minister Mateusz Morawiecki has also sought tough sanctions against Russia at the EU.
European Council adopts 9th package of sanctions on Russia
Ambitious budget for 2023
Thanks to government support, Poles were better able to cope with the challenges of crisis 2022. We also look to the future with hope. That is why we have prepared an ambitious budget for 2023. In it, we combine fiscal responsibility with the implementation of important social programmes that strengthen Polish families, seniors, Personnel and entrepreneurs. We are planning for state budget revenues to reach PLN 604.5 billion in 2023. In 2015, it was only PLN 289.1 billion. This represents an increase of nearly 110 per cent.
