Government Budget.  Boguslaw Grabowski: The expected deficit is PLN 192 billion.  This is the absolute record.  Mateusz Morawiecki wrote to Brussels about this

Prime Minister Mateusz Morawiecki only stops lying when he sleeps. He talks about the good state of the budget, and in the documents sent to the European Commission, the expected deficit is PLN 192 billion. This is an absolute record – said Boguslaw Grabowski, economist and former member of the Monetary Policy Board, in the program “One on One” on TVN24 channel.

We know that fiscal policy will be excessively loose over the next year or two. Why? “We inherited huge public finance problems from PiS,” the economist said.

The host noted that Prime Minister Mateusz Morawiecki speaks out about the good state of the budget and claims that revenues have never been so high. – But the Prime Minister lies when he opens his eyes in the morning, and he only stops when he is asleep – commented the TVN24 guest.

On October 11 of this year, the Prime Minister himself sent the so-called financial nomination to the European Commission. These are 12 pages of schedules that EU member state governments must send to the European Commission. Grabowski said that these data relate to the field of public finance, deficit and debt.

In this document – he is quoted – “It is written: The deficit in the public finance sector expected this year is PLN 192 billion with the GDP expected to reach PLN 3 trillion and 400 billion.” This gives a deficit of 5.6 percent relative to GDP. This is the absolute record. He added: At the same time, we know that we have social obligations that must be fulfilled.

Grabowski: Glabinski’s two terms in office mean the NDP has become partisan

Grabowski also evaluated the activities of NBP head Adam Glabinski. – Both periods are highly politicized and partisan of the central bank. In my opinion, this is a violation of Paragraph 4 of Article 227 of the Constitution, and means carrying out public activities that are incompatible with the dignity of the position – “one to one” guest said.

He added: “We do not know how this political behavior will develop during the opposition period with regard to the president’s political views.”

– Unfortunately, if he cared about the value of Polish money, and if he were independent of the political sphere, we would know that the Monetary Policy Council, including the head of the Polish National Bank, would continue the policy aimed at achieving inflation. The goal, but it does not do so – said the economist.

Grabowski: With inflation rising but slowing, it will be more difficult for the government

TVN24 guest also talked about inflation – we are not in a soft landing scenario. Such a scenario is being implemented in the United States. But part of this decline is the return of inflation to target. He added that at the present time we do not have any expectations showing a return of inflation to the 2.5 percent target on the horizon.

He stated that “the government is not supported by high inflation, but by accelerating inflation.” He explained – if it is high, but slowing down, it does not favor the government, because income comes from inflation falling and falling, and expenses indexed on the basis of the previous year’s inflation are higher and higher.

– With inflation rising but slowing, it will be more difficult for the government. Unfortunately, the new government will face the wind in this regard, he said. However, he pointed out that “we do not know how President Glabinski and the Monetary Policy Board will act.”

Grabowski: The Minister of Finance must be a politician

Grabowski was asked who he sees as the new finance minister. – I read in the newspapers about former Minister Mateusz Szczorek, about Mrs. Isabella Leszczyna, and about Dr. Andrzej Domanski. (…) He said that all these candidates are excellent.

He stressed that, in his opinion, “politicians should be in ministerial positions.” He pointed out that politicians go out to citizens and promise them something during the election campaign, and they must fulfill it and settle scores after four years.

Macroeconomic policy takes place in a particular social and political environment. A politician can gather experts and advisors around him, but he must be the face of change. He added that he feels the social and political commitments he made during the election campaign.

Main image source: TVN24

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