General Polish government debt stands at PLN 1,581.16bn at the end of Q2, or 48.4% of GDP

General Polish government debt stood at PLN 1,581,164.3m at the end of Q2 2023, up 4.6% from the end of 2022, the Finance Ministry said. The debt-to-GDP ratio stood at 48.4% at the end of Q2 2023, up 0.3pp q/q and down 0.7pp from the end of 2022.

Sovereign public debt (PDP, public finance sector debt after consolidation) at the end of Q2 2023 amounted to PLN 1,241,597.5 million, implying:

- an increase of PLN 31,747.9 million (+2.6%) in Q2 2023,

- an increase of PLN 32 101.7 million (+2.7%) compared to the end of 2022.


The change in PDP in Q2 2023 was the result of:

- an increase in the debt of the government sub-sector by PLN 30,967.7 million (+2.8%), including the consolidated debt of the State Treasury (SP) by PLN 30,871.6 million (+2.8%),

- an increase in the debt of the local government sub-sector by PLN 781.8m (+0.8%), with an increase in the debt of local government units and their unions (JST) by PLN 400.4m (+0.5%),

- a decrease in the debt of the social security sub-sector by PLN 1.6 million (-7.3%).


The PDP-to-GDP ratio at the end of Q2 2023 stood at 38%, unchanged from the previous quarter and down 1.3 percentage points from the end of 2022, the ministry also said.

General government debt (EDP debt), which is one of the elements of the Maastricht fiscal criterion, stood at the end of Q2 2023. PLN 1,581,164.3 million, which represented:

- an increase of PLN 49,332.6 million (+3.2%) in Q2 2023,

- an increase of PLN 69,010.7 million (+4.6%) compared to the end of 2022.


The change in EDP debt in Q2 2023, in addition to changes in PDP, was mainly driven by:

- an increase in the consolidated debt of the COVID-19 Fund (FPC) by PLN 11,073.9 million,

- an increase in the debt of the Relief Fund (FP) by PLN 3,459.9 million,

- an increase in the debt of the Armed Forces Support Fund (FWSZ) by PLN 3,214.5 million,

- an increase in the impact of the inclusion of enterprises in the general government sector by PLN 2,404 million, including a decrease in debt by PLN 1,307.2 million and a decrease in treasury securities held by these entities by PLN 3,711.2 million, it further listed.

The EDP's debt-to-GDP ratio at the end of Q2 2023 stood at 48.4 per cent, up 0.3 percentage points from the previous quarter and down 0.7 percentage points from the end of 2022, the ministry concluded.

Source: Polish Finance Ministry and ISBnews