NIK President about state budget performance in 2019

At the plenary session of the Sejm, NIK President Marian Banaś presented the results of the budget performance audit. The Supreme Audit Office evaluated the budget performance positively. Therefore, the Council of NIK passed a resolution where it approved the grant of discharge to the Council of Ministers for 2019.

NIK President giving his speech on a platform at the Polish Sejm

Pursuant to Article 204 of the Constitution of the Republic of Poland, NIK is obliged to present the Sejm with the Analysis of the state budget performance and assumptions of the monetary policy in 2019, and the opinion of the Council of NIK on the grant of discharge to the Council of Ministers for 2019.

The Supreme Audit Office positively evaluated the Budget Act performance for 2019. NIK also stated that the report of the Council of Ministers on the state budget performance, in all vital aspects, presents reliable information and data on revenue, expenditure, receivables and liabilities as well as the result of the state budget and the European funds budget.

Most of the state budget performance ratings (120 of 145) referring to individual budget components and financial plans of non-budget entities were positive. There were also 24 descriptive ratings and one negative rating.

Post-audit ratings in 2019: positive- 120 (in 2018 - 116), descriptive - 24 (in 2018 - 22), negative- 1 (in 2018 - 3)

As compared with the year before, the number of positive and descriptive ratings went up, whereas the number of negative ratings went down.

Revenue and expenditure of the state budget and the European funds budget (in PLN billion)

Image description

The state budget, the European funds budget, and financial plans of non-budget entities of the public finance sector were implemented in compliance with the Budget Act.

The total revenue of the state budget and European funds budget was nearly PLN 17 billion higher than forecasted.

The revenue performance was supported by favourable macroeconomic situation, reform of tax and customs services (establishment of the National Revenue Administration), as well as implementation and development of IT tools, making it easier for taxpayers to meet their tax obligations and for the tax administration to enforce them.

Expenditure of the state budget and the European funds budget in 2019 was over PLN 16 billion lower than the limit set out in the Budget Act.

The Supreme Audit Office examined legality, economy, purpose, and reliability of nearly PLN 100 billion expenditure. In most cases, the expenditure was born properly, in compliance with public finance management principles. Certain irregularities, of little financial impact as compared with the total budget, were related mainly to unjustified and uneconomical spending, flaws in granting subsidies, improper use of subsidies by beneficiaries, and failure to recover budget receivables. We identified some cases of non-compliance with the provisions of the Public Procurement Act. It happened that faulty management control mechanisms were in place. Also, some errors occurred in accounting and reporting.

Total result of the state budget and the European funds budget (in PLN billion)

Image description

The deficit of the state budget and the European funds budget totalled PLN 11.1 billion. It was PLN 33 billion lower than planned. It was financed from unallocated funds coming from non-budget entities of the State Treasury. It means that the Minister of Finance did not have to incur any extra debt in financial markets.

Nevertheless, the State Treasury debt increased in 2019 by PLN 19 billion. The increase was among others triggered by the following: a loan of nearly PLN 9 billion for the Solidarity Fund for Persons with Disabilities to finance the so-called annual bonus and unpaid transfer of treasury bonds to universities and colleges, the Local Government Roads Fund and public media -almost PLN 6 billion in total. Those operations were acceptable from the legal point of view but the way they were carried out and registered made the public finance less transparent.

The Supreme Audit Office, having audited the National Bank of Poland, positively evaluated the implementation of the Assumptions of the monetary policy in 2019. The inflation goal was achieved and the monetary policy supported sustainable economic growth and balance in the financial market.

The Council of NIK got acquainted with the Analysis of the state budget performance and assumptions of the monetary policy in 2019 and passed a resolution where it approved the grant of discharge to the Council of Ministers for 2019.

At the same time, the Council of NIK considered it essential to accelerate works on the budget system reform. The idea is to develop a new, comprehensive model of budget planning and to change the budgeting principles to the task-based approach.

The Council of NIK also stressed the need to boost the efficiency of the strategic review of spending. This is particularly important in the conditions of the deepening imbalance of public finance.

Article informations

Date of creation:
28 July 2020 16:27
Date of publication:
28 July 2020 16:22
Published by:
Andrzej Gaładyk
Date of last change:
29 July 2020 09:15
Last modified by:
Marta Połczyńska
On the left: cover of NIK's printed publication:

Read content once again