Public debt has exceeded 800 bln PLN yet again – show recent figures presented by the Ministry of Finance. – In less than 9 months, as much as 39.4 percent of the surplus created by changes in OFE has already been used. At this rate, public debt will return to the level it had before over half of OFE assets were overtaken as early as 2016 – warns expert of Employers of Poland Łukasz Kozłowski.
Despite changes in the functioning of the pension system – one of which was to move bonds owned by OFE’s to ZUS in order to annul them, with the effect of lowering the debt of the public sector by more than 130 bln PLN – state public debts has exceeded the 800 bln PLN mark yet again. This means that overtaking over half of OFE assets enabled a return to debt levels of the second half of 2011. Sadly, due to the surplus created by this move being used very quickly, debt will return to the levels of before the steps were taken as early as in 2016.
This goes to show that when faced with a significant deficit in public finance, one-off activities aimed at lowering it are not particularly effective. Fiscal consolidation and graduate budget balancing are far more important. Admittedly, the Polish government is undertaking some activities leading in this direction. Next year, the balance of the government and local government authorities should improve to an extent making it possible for the excessive deficit procedure, imposed on Poland in 2009, to be lifted. This is certainly thanks to the economic upturn we are now experiencing. This is a good opportunity to repair state finances. It it is not used properly, Poland will still be stuck in a trap of pro-cyclical fiscal policy.
Łukasz Kozłowski, expert of Employers of Poland