IMF urges Poland to maintain stringent fiscal policy

Poland should establish a rigorous standard for further fiscal relaxation due to escalating expenditure demands stemming from infrastructure, climate hazards, and security expenses associated with the conflict in Ukraine, a senior International Monetary Fund (IMF) official said.

The European Commission predicts that Poland’s budget deficit will reach 5.4 per cent of GDP this year, potentially surpassing the EU’s 3 per cent threshold in 2023.

Warsaw is contemplating a 10 billion zloty programme to fortify its eastern border, while negotiations are underway for an exemption from the EU’s deficit procedure.

Meanwhile, Poland’s general government debt is expected to exceed the constitutional limit, prompting Finance Minister Andrzej Domanski to propose measures to enhance the transparency of public finances.

Attribution: Reuters