Poland’s Finance Minister Calls for Fiscal Transparency Amid Increasing Debt Servicing Costs

Poland is taking significant steps to increase the transparency of its public finances in the face of rising debt servicing costs, Finance Minister Andrzej Domanski announced. The measures include a thorough review of public finances, reining in out-of-budget spending, and establishing an independent fiscal council to assess government policy.

“I will be encouraging the government to move towards maximum transparency,” Domanski told reporters, emphasizing the importance of accountability in managing the country’s finances. Poland is among nearly a dozen European Union countries at risk of being put under the bloc’s excessive deficit procedure due to its deficit limits exceeding 3% of GDP.

Domanski highlighted the need to repair public finances following years of elevated off-budget spending, particularly during the COVID-19 pandemic. He announced that the state-owned development bank BGK would start publishing data on all its funds quarterly, starting April 30, to enhance transparency.

The Finance Minister also mentioned plans to merge some of BGK’s funds and collaborate with other ministries to streamline operations. Additionally, Poland will adopt an annual long-term financial plan and establish a fiscal council to monitor government policy and macroeconomic projections.

Domanski acknowledged the challenges posed by high debt servicing costs and external economic pressures, emphasizing the importance of private investments in driving economic growth. He expressed a commitment to engaging with investors both domestically and internationally to boost economic activity.

The Finance Minister’s proactive approach to enhancing transparency and fiscal responsibility reflects Poland’s commitment to sound financial management in the face of economic challenges.