Higher defence spending, weaker consumption and flood aid costs behind Poland's gg deficit increase - FinMin
Poland's general government deficit rose to 6.6 percent of GDP in 2024 due to increased defence spending, weaker consumption and expenditure related to aid provided to citizens of flood-stricken areas, Finance Minister Andrzej Domanski assessed on X. Lower VAT revenues due to reduced consumer activity also contributed to the deficit.
"Accelerated spending on rebuilding defence capabilities (according to EU methodology), weaker-than-expected consumption (higher savings) leading to lower VAT revenues, and flood-related expenditures are the main reasons for the higher deficit," Domanski wrote.
He stressed that these factors were key challenges for fiscal stability.
According to the stats office GUS' preliminary estimate, in 2024, Poland's general government deficit stood at 6.6 percent of GDP, against a deficit of 5.3 percent of GDP in 2023.
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