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President Duda's Decisions May Have Cost Polish Budget 7.3 Billion Zloty
๐Ÿ‡ต๐Ÿ‡ฑ Poland /Economy & Trade

President Duda's Decisions May Have Cost Polish Budget 7.3 Billion Zloty

From Rzeczpospolita · () Polish

Translated from Polish, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • President Andrzej Duda's decisions, including 41 vetoes and two requests for constitutional review, may have cost the state budget approximately 7.3 billion Polish zloty.
  • Key revenue-generating measures blocked by Duda included a sugar tax increase and higher excise taxes on alcohol.
  • The potential revenue shortfall is significant when compared to the costs of social programs like the "grandmother's benefit" and widow's pensions.

Decisions made by President Andrzej Duda during his term, notably his vetoes of legislation and referrals to the Constitutional Tribunal, may have resulted in a loss of approximately 7.3 billion Polish zloty for the state budget, according to media reports.

During his tenure, President Duda vetoed 41 bills and sent two to the Constitutional Tribunal for preventive review. The portal money.pl calculated that the sum of lost revenue from these actions, including funds intended for the National Health Fund (NFZ), is substantial. The report suggests that over half of the rejected provisions, 24 laws, did not directly impact the state budget. However, several other regulations aimed at significantly increasing state revenue were affected.

These revenue-generating proposals included an increase in the sugar tax and higher excise duties on alcohol, as well as measures to tighten regulations on family foundations and introduce a tax on "extraordinary profits" of fuel companies. Money.pl estimates that if these measures had not been blocked by presidential vetoes or referrals to the Constitutional Tribunal, they could have generated up to 7.3 billion zloty in state revenue this year. These estimates are based on official calculations provided by the Ministry of Finance during the legislative process.

Specifically, the tax on extraordinary profits from fuel companies was projected to yield 3.8 billion zloty but was sent to the Constitutional Tribunal. A proposed increase in excise tax on alcohol, expected to bring in 1.8 billion zloty, was vetoed. Another measure, aimed at improving tax collection and expanding the SENT system, which was anticipated to generate 1.2 billion zloty, was also blocked by a veto.

When the potential revenue from the increased sugar tax, which was projected to add about 850 million zloty annually to the NFZ, is included, the total potential lost revenue rises to 8.2 billion zloty. For context, money.pl compares the 7.3 billion zloty shortfall to the costs of existing social programs. The "grandmother's benefit" program costs approximately 6 billion zloty annually, while the payout for widow's pensions ranges from 8 to 10 billion zloty per year.

DistantNews Editorial

Originally published by Rzeczpospolita in Polish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.