Poland may end 2017 with 30% smaller budget gap: experts
PR dla Zagranicy
Victoria Bieniek
24.06.2017 11:56
Poland may see out 2017 with a budget gap PLN 20 billion (EUR 4.7 billion) less than the PLN 59.3 billion planned, experts have said after the year-to-May deficit came in at 0.3 percent.
Photo: Narodowy Bank Polski
According to ING Bank Śląski's Jakub Rybacki, the 2017 budget gap could be some PLN 15-20 billion less than expected, which would mean Poland's borrowing needs would also fall.
“It's a large amount, for instance fully securing expenditure for the 500+ programme (of family benefits). The risk of public debt growing falls significantly, which is also very important to the long-term operation of the economy,” Rybacki added.
Piotr Bielski of the BZ WBK bank said that “from 'statistical' estimates the deficit at the end of the year could be PLN 30 billion less,” but that would require for current low spending to continue, which would be difficult.
“The fact that, after five months, we have a near-balanced budget is not just the effect of revenues but to a large extent spending, which has been behind schedule,” Bielski said, predicting an October hike in expenditure when the statutory retirement age is reduced.
Michał Rot, an economist from PKO Bank Polski said the budget gap could come in lower than expected but the end result depends on the transfer of revenues and spending plans between this year and next. (vb)
Source: PAP