Ministry of Finance has reported that the national debt level at the end of March reached 941.428,3 mln PLN, which is lower than it was in February by 0,4%. It also noted that, instead of reaching 10,5 bln PLN of debt to the end of April the debt amounted to only 0,9 bln PLN. The debt level is consequently at a record-low level. In comparison, in the same period last year the debt amounted to over 11 bln PLN.
What caused such a drastic fall of debt? The first of reasons is a very good VAT-collection. The income were higher by 33,8% compared to the last year, which amounts to around 14,4 bln PLN. This, in turn, can be owed to good situation on retail market caused mainly by “500+” programme. However, the raises concerned all forms of taxes. According to the Ministry of Finance, all around they were higher by 20%.
The PIT collection rate was also at a record-high with 7,6% raise. The income from this form of tax was never higher than 5 bln PLN, and just that happened on April for the first time ever.
This can be owed to good situation on the labour market in Poland. Low unemployment rate and bad demographic situation make it so the employers find it harder to find employees. Consequently, they are forced to give pay raises to them. The families can also spend more now on various expenses. Altogether, the economy of country prospers when people have more money to spend.
Polish economy after the slowdown noted in the last year seems to be making a recovery. In the first quarter of 2017 GDP grew by 4% compared to the same quarter last year.
