Ministry of Finance: 11 months into the year, the budget has a surplus of PLN 18.3 billion

Eleven months into 2022, the budget has a surplus of PLN 18.3 billion. Income from value-added tax, CIT tax and excise tax was higher year-on-year, and income from personal income tax was lower – according to estimates provided by the finance ministry’s chief economist, Łukasz Czernicki.

As Czernicki noted, in November 2022, state budget revenues decreased by about PLN 7.2 billion, or by 15.7 percent. On an annual basis it amounted to about PLN 38.6 billion. In January-November 2022, the implementation of state budget revenues amounted to about PLN 464.5 billion and was higher by about PLN 13.1 billion, or by 2.9 percent. Compared to January – November 2021 performance.

“Expenses by the end of November this year amounted to about PLN 446.3 billion, which means that after eleven months of 2022, a surplus of PLN 18.3 billion was recorded in the budget,” – told the economist.

The representative of the Ministry of Finance indicated that according to the Carbon Allowance Law, the income of the state budget from the payment of NBP dividends (higher than the amount expected to be paid for part of the annual profit of the National Petroleum Corporation specified in the budgetary law of 2022) goes to the COVID-19 Prevention Fund. In the budget law for 2022, 844,455,000 PLN are planned. PLN for income from NBP dividend payment. Thus, 9 billion 581 million 338 thousand went to the Anti-COVID-19 Fund. zlotys.

“This amount reduced the income of the state budget from NBP dividend payments in 2022.” Cherniki said.

According to data from the Ministry of Finance, value-added tax revenue in November this year amounted to approx. It was about PLN 0.9 billion lower, or 4.6 percent. On an annual basis it amounted to about PLN 19.6 billion. From January to November 2022, the implementation of VAT revenues amounted to about PLN 211.8 billion and was higher by about PLN 11.8 billion, or 5.9 percent. Compared to January – November 2021 performance.

Excise tax income in November this year. It was lower than the income from November of the previous year by about PLN 0.2 billion, down 4.6 percent. It amounted to about 7 billion Polish zlotys. From January to November this year. The implementation of the excise tax revenue amounted to about PLN 72.7 billion and was about PLN 4.2 billion (ie 6.2%) higher than the implementation in January-November 2021.

On the other hand, the income of the state budget from the PIT in November of this year was PLN 3.8 billion, 57% less than in 2018. On an annual basis, it amounted to about PLN 2.9 billion. Cumulatively since the beginning of the year, that is, from January to November 2022, the revenues of the state budget from operating income tax decreased by PLN 1.9 billion, or by 2.8 percent. On an annual basis it amounted to PLN 63.5 billion.

The chief economist explained that “the weak performance of the state’s general budget revenues from the personal income tax in November compared to the same period of the previous year is mainly due to the transfer of additional revenues to local governments this month from the share of revenues from the personal income tax.” Ministry of Finance.

Czernicki added that in November, a third of the amount of additional revenue planned for the year, about PLN 4.6 billion, was transferred. Shares in the same amount were transferred to local governments from the state budget also in December.

According to the data of the Ministry of Finance, the revenues of the state budget from the CIT in November of this year were higher by about PLN 0.3 billion, or 5.8 percent. On an annual basis it amounted to about PLN 4.9 billion. In January-November 2022, the implementation of CIT proceeds amounted to about PLN 65 billion and was about PLN 17.8 billion higher (i.e. 37.7%) compared to the implementation in January-November 2021.

Under the law on special solutions for some heat sources due to the situation on the fuel market, compensation to energy companies, allowances for households and allowances for vulnerable entities are financed from the COVID-19 Fighting Fund, which was approved by the end of October to more than PLN 5 .9 billion from the funds received The state budget from the sale of greenhouse gas emissions allocations through auction.

As Finance Minister Magdalena Rzekowska reported a few days ago, there is a chance of generating a budget surplus for the whole of 2022. However, she indicated that the final data will be available after analyzing the implementation of the budget for the entire 12 months.

– We will be able to sum up the implementation of the budget in 2022 in its entirety only in 2023, that is, after the end of December. The end of the year is a difficult period for budget officials and the Ministry of Finance, because it is the time to close budget expenditures, but it is also a period of summing up and calculating where we have budget savings and how we can do so. The Minister of Finance said the use of these savings.

And Rzekowska informed that this year it was decided to adopt a solution according to which the so-called non-expired funds, that is, those that have been carried over to the following year, will not be.

– Because of the very frugal approach to expenses, we have decided to have no unfinished expenses. All spending plans must be closed, and we will try to allocate the savings that will arise in the budget for the most urgent needs. Let me remind you that this year was really difficult, it was the year of the war in Ukraine and the energy crisis, so the government launched support programs for citizens, including those related to freezing prices for gas and energy. Money is needed for all this. What we managed this year will be donated to these needs – said Magdalena Rzeczkowska.

However, the budget surplus projected by the Ministry may not result from the actual result of the balance sheet, but from the way it is calculated. The basic data is the value of public debt. On the one hand, it can be calculated as the debts of all institutions referred to in the Public Finance Law. It cannot be more than 60%. annual gross domestic product. On the other hand, according to EU guidelines, public debt can also be counted as general government debt. In this case, the COVID-19 Prevention Fund, which was not included in the first methodology, is also included, for example.

The difference between the values ​​calculated by the two methods amounted to PLN 298.1 billion in September. We wrote more about it here.

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