What opportunities does the government have if it wants to increase the tax-free amount to PLN 60 thousand?
In practice, none.
The increase of the PIT-free amount to PLN 60 000 would mean a decrease in budget gross of the order PLN 55.9 billion per year. This is simply a immense amount – that's what Poland spends on the 800+ programme.
The problem is that specified a decision would should be taken at an highly hard time for public finances. Already in 2023 In Morawiecki's reign, Poland recorded a very advanced deficit in the public finance sector, which grew after Tusk took over the government.
W July 2024 the country has been additionally subject to excessive deficit procedure, which in practice importantly limits the anticipation of further expanding the budget deficit.
This procedure assumes that the State should search to consolidate finance alternatively than to make decisions that exacerbate the imbalance in income and expenditure.
Meanwhile, 2026 The deficit of the state budget is expected to amount to around 273 billion PLN, i.e. around 6.3 to 6.5% of GDP in 2026.
Therefore, if the government would nevertheless like to realise the promise to increase the amount available to PLN 60 thousand, it has theoretically only 3 options:
1. Find almost PLN 56 billion in savings on the expenditure side, which would mean drastic cuts in various public policy areas.
2. Increase another taxes or contributions to compensate for failure of PIT income.
3. Apply a mixed solution, i.e. at the same time cut expenses and rise taxes.
Fighting the government is its main political goal.
This can be seen from his legislative proposals: he advocates expanding or introducing fresh expenditures without indicating sources of funding, while vetoing all parliamentary and government laws that lead to savings or increase in gross into the budget.
Since around 80% of budget expenditure is alleged rigid expenditure, as enshrined in the laws in force, there is no real anticipation of obtaining crucial expenditure savingsBecause Nawrocki will block specified solutions.
And there's nothing to number on fromIncrease in budgetary revenueBecause Nawrocki will block specified solutions too.
Theoretically, it would be possible to save on military and arms spending, but in the current geopolitical situation, the government cannot afford this.
Wait... We can besides skip the deficit and debt and borrow the 56 billion fromed
