December 23, 2019 / 11:59 AM / a month ago

Poland approves 2020 state budget with no deficit

WARSAW (Reuters) - Poland’s government on Monday approved a 2020 state budget that assumes no deficit, a move that could help bolster public support for the ruling Law and Justice (PiS) party before next year’s presidential election.

The government approved the state budget which assumes equal revenues and spending at 435 billion zloty ($113.20 billion), the Prime Minister’s office tweeted.

“This was possible thanks to better tax collection, we chased away this tax mafia,” Prime Minister Mateusz Morawiecki told news conference.

Although the government says the balanced budget is an effect of better tax collecting, analysts have said one-off items such as pension reform fees, CO2 emission certificates, and the sale of 5G frequencies got rid of the deficit.

The Prime Minister’s office also tweeted that the general government deficit next year will amount to 1.2% of gross domestic product, after deducting one-offs, still below the European Union’s ceiling of 3%.

It did not show the 2020 general government deficit figure before the one-offs deduction That was previously estimated by Morawiecki at 0.4% to 0.5% of GDP.

Reporting by Marcin Goclowski; editing by Larry King

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