Sunday, July 12, 2009

Polish budget deficit continues to rise as tax revenues collapse

The government will approve the amendments to this year's budget act later today. According to data from the Finance Ministry, tax revenues will be zl.46.6 billion lower than those assumed in the act still in force.

Just a week ago the Finance Minister claimed that the figure will stand at zl.37 billion. "The loss in tax revenues is much larger than even the most pessimistic forecasts," said Janusz Jankowiak, chief economist with the Polish Business Council.

The largest difference will be recorded in VAT revenues as the number will be lower by some zl.24.6 billion as compared to earlier plans. Total revenues will be lower by zl.30.1 billion as the Ministry plans to acquire higher figures from the non-fiscal revenues.