Budget surplus recorded in the 1st quarter of 2008.

Central Statistical Office (GUS): In January-March 2008 national budget revenue was PLN65.9 billion and expenditure was PLN62.8 billion, which respectively accounted for 23.4% and 20.3% of the amounts planned for 2008 under the budget law. The budget surplus amounted to PLN3.1 billion. (...) Receipts from indirect taxes rose by 10.7%, of which receipts from excise tax rose by 3.9%. Their share in total revenue was lower than a year before at respectively 62.4% and 20.2%, compared to 67.0% and 23.1%. (...) Receipts from corporate income tax were over two times higher than a year before (their share rose from 8.1% to 14.7%), and receipts from personal income tax were higher by 8.9% (their share decreased from 12.1% to 11.1%). In the 1st quarter the implementation of the budget law’s expenditure plan was by 3.1 percentage points lower than in the previous year. Money spent for servicing domestic and foreign debt accounted for 7.2% of total expenditure (9.1% in the previous year). Subsidies for the Social Insurance Fund and Pension Fund declined respectively by 20.2% and 10.2%. (“Information on the Country’s Socio-Economic Situation,” April 21, 2008)

Gdańsk Institute for Market Economics (IBnGR) on budget surplus in the 1st quarter of 2008.

IBnGR: According to preliminary data from the Ministry of Finance, a budget surplus of slightly over PLN3.1 billion was recorded in the 1st quarter of 2008. The implementation of the budget revenue and expenditure plans was well advanced (respectively 20.3% and 23.4%). Indirect taxes were the main source of budget revenue in the 1st quarter. Receipts from indirect taxes reached over PLN41 billion, which accounted for almost two thirds of total revenue in this quarter. (IBnGR Report entitled “The State and Projection of Economic Conditions,” April 22, 2008; www.ibngr.edu.pl)

PKO BP on the implementation of the budget law in 2008.

PKO BP: Owing to the increase in prices in late 2007 and early 2008 and the continued high inflation rate, additional revenue appeared in the previously tight budget projection. Meanwhile, the weakening of domestic demand in the second half of the year will lead to a slower growth in tax revenue. As a result, the budget deficit at the end of 2008 will be slightly lower than projected and will stand at PLN27.1 billion. Most of the planned expenditure will be implemented. However, if investment spending - funded exclusively from the national budget or partially funded from the EU budget - remains largely unimplemented the budget deficit may be much below PLN20 billion. (“Macroeconomic Bulletin, PKO BP, 2nd quarter 2008”)