In the period 2015-2021, social spending in real terms in Poland increased by about 43%. – It was the fifth highest score in the European Union (with an average of 22.3%).
According to the FOR analysis, public spending per capita for the first time exceeded PLN 30,000. zloty. However, if we only consider the staff, it will be PLN 69,583 per person. These expenses were increased by 1.3 thousand. PLN is higher than income. Therefore, the per capita public debt rose to 37,405 PLN. Of this amount, PLN 6,946 (more than PLN 2,138 in 2020) will be outside the constitutional definition of debt and out of parliamentary control.
All public spending is financed either by taxes we pay or by debt issued by the government (which means higher taxes in the future). Many people, when calling for the state to implement other programs, do not see this as implying greater taxation of society, notes the published statement.
The report’s authors, Dr. Swamir Dodik and Marcin Zelensky, quoted former British Prime Minister Margaret Thatcher, who said years ago that “public money is taxpayers’ money.” The Iron Lady noted that “if the state wants to spend more, it must either borrow people’s savings or tax them more.”
More money for public spending
In the previous year, public spending was 44.2 percent. GDP – less than a year ago, when the pandemic broke out, but still more than it was in 2019. The forum states that since 2015, when the PiS took power, public spending in real terms has increased by 35%.
It is possible thanks to the good economic situation in Western Europe and the employees from Ukraine. On the other hand, the Government of Law and Justice imposed additional taxes, which it called, inter alia, the emission levy or solidarity tax. To this is added, for example, a bank and trade tax that increases the revenue of the state budget, but affects the wallets of citizens.
Public sector revenue in 2015-2021 increased by 3.3%. Gross domestic product. – NOTIFY FOR. Increasing public sector debt. Despite very good economic conditions, the government failed to balance public finances. As a result, public debt in 2015-2021 increased by 2.5%. Gross domestic product.
The debt will have to be paid. Along with interest. FOR is similar to the April forecast presented by the government itself in its “Multi-Year State Fiscal Plan 2022-2025”. This year, the interest on the public debt is expected to reach 1,258 PLN per person, and in 2023 it will be 1,705 PLN. It was much lower in 2021 (PLN 772).
– Already this year, the cost of servicing the public debt will be higher than the cost of the “Rodzina 500+” program. The interest in the “account from the state” will increase by about a thousand. zloty. That’s nearly double and a half spending on the police, fire and other services combined, and slightly less than military spending, for. Economists report that the entire fiscal sector covers more than 61 thousand. different units. They include schools, universities, and hospitals as well as municipal cemeteries, city parks, and film studios.
What did we pay more?
Every year we pay more for pensions. The average Polish citizen spent 8,938 zlotys on it, including “thirteen” and “fourteen”. This is much more than two consecutive categories of expenditures combined – healthcare (PLN 3851) and education and science (PLN 3731).
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This approach is incompatible with FOR, which proposes to reduce pension expenditures by increasing the retirement age, and abolish the privilege of early retirement (with the possibility of adjusting the amount of contributions in the case of such professions, as miners, who have a lower retirement age that may be justified), and inclusion of farmers, soldiers, policemen, judges and prosecutors in the general pension system, giving up other allowances such as “thirteenth” and “fourteenth” pensions. All these factors to weaken the development potential of the Polish economy.
Unfortunately, politicians are too eager to promise more benefits to retirees, and to avoid system reforms. It must be emphasized that Poland spends more on pensions than other Central and Eastern European countries at a similar level of development, and at the same time a society is aging very quickly – for example, for the sake of economists.
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