Poland Widens 2024 Budget Gap Due to Lower Tax Inflows and Flood
- Revision sees this year’s inflation at 3.7%, down from 6.6%
- Poland is already facing the EU’s excessive deficit procedure
Poland’s government revised up its 2024 budget deficit as lower than expected value-added tax revenues strain the fiscal plan along with additional spending triggered by a devastating flood.
The budget deficit is set at 240.3 billion zloty this year ($60 billion), up from the previous 184 billion zloty cap, the government said on Tuesday. Just hours before the expected revision, demand at a government bond auction tumbled to the lowest level in two years in another sign that investors are growing concerned over the bulging budget.