Public finance

In 2013, the state budget deficit proved to be clearly higher than the deficit of PLN 30.4 bn recorded in 2012. It was initially planned to be PLN 35.6 bn, but worse tax revenues than expected driven by an economic downturn forced the government to amend the Budget Act in September 2013. The planned deficit was increased to PLN 51.6 bn. In January 2014, the Ministry of Finance initially reported that the 2013 deficit was approximately PLN 42.5 bn.

The state public debt (PDP according to the Polish definition) increased in 2013 by PLN 39.7 bn to PLN 880.2 bn. At the same time, the debt of the government and local government institution sector (EDP according to the European definition) increased by PLN 45.6 bn to PLN 932.5 bn. At the end of 2013, PDP as a percentage of Polish GDP was 53.9%, while EDP was 57.1%.

Poland had no problems whatsoever in obtaining debt financing – 25% of its borrowing needs planned for 2014 had been financed at the end of 2013. After March 2014, this figure surged to 70%.