Inflation is going crazy. Mateusz Morawiecki does not rule out a budget amendment

During the Tuesday press conference, the head of government was asked about a possible amendment to the budget act for 2022. The act assumes the continuation of economic growth – GDP is to increase by 4.6%. Meanwhile, the average annual inflation this year is expected to amount to 3.3 percent.

Meanwhile, the Central Statistical Office in the so-called According to a quick estimate, inflation in December 2021 was 8.6 per cent, and the average annual price growth in 2021 was 5.1 per cent.

Prime Minister Mateusz Morawiecki during the press conference on the anti-crisis shieldNew anti-inflation shield announced. “They were invented in the Polish People’s Republic. We know how it ended”

Will there be an amendment to the budget for 2022? “Highly probable that in the second half of the year”

– The budget was created at a time when the world was not thinking too much about inflation. A few months ago, it was not the number one topic – said Mateusz Morawiecki during the conference. He added that “today the budget act has not been fully approved yet, in the entire legislative cycle, it has not been signed even by the president, so it is difficult to talk about an amendment to something that has not yet been adopted”.

The head of government said that the average annual inflation may fluctuate around 7%, “maybe even more”. – Today such an amendment would be premature, I do not expect that despite these huge tax cuts, some legislative changes in the budget act will be needed in February, March and April – he stressed. He assured, however, that “somewhere in the second half rather – it is highly probable that such an amendment may occur, but at the moment there is no such necessity”.

Read more information on inflation on the homepage

Shopping and inflation (illustrative photo)“Even double-digit inflation”. Experts predict when it will begin to brake

The government presented the 2.0 anti-inflationary shield. There will be a reduction in VAT rates for fuel, gas and food

During the press conference, Prime Minister Mateusz Morawiecki also presented the assumptions of the new anti-inflationary shield. The solution primarily provides for a reduction in VAT rates for fuel (from 23% to 8%), gas and food (to 0%). The government will also lower VAT on fertilizers and extend the VAT reduction on electricity.

– All these cuts may cost the Polish budget PLN 15-20 billion – said the head of government. The anti-inflationary shield 2.0 will be implemented on February 1 and according to the current plan it will be in force for six months.

How much will Poles save thanks to the new anti-inflationary shield? Read our article: Morawiecki announces a new shield. Zero VAT on food. There will be a compensation for gas heating

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Andrzej Duda referred to inflation: I also pay the bills. I also do shopping

About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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