Grabovsky on the costs of rapid valorization of more than 500. “A drop in the sea”

On Sunday, during the Law and Justice congress, the leader of this party, Yaroslav Kaczynski, announced that more than 500 people would be indexed from 2024. The allowance will increase to PLN 800. A day later, Civic Platform head Donald Tusk proposed accelerating valorization so that “it becomes a fact on Children’s Day, June 1, and not on New Year’s Eve 2024.” presented a draft law to the Sejm, stressed in an interview with Polish Radio that the introduction of 800 plus at once is “impossible”.

Valorization 500 plus since June. The Economist Determines Costs

According to economist Dr. Bohuslav Grabowski, it doesn’t really matter if the 800 is introduced now or after the new year. - Both since January and now (you can give 800 plus - ed.) - said Grabowski on TVN24’s Eden na Jedno.

The economist’s calculations show that an increase from more than 500 to 800 zlotys in June will mean 12 billion zlotys for the budget. The former member of the Monetary Policy Council (MPC) recalled the recent public spending, which cost 10 billion zł.

– Three weeks ago, 10 billion zloty was allocated to cover the incompetence of the PiS government in matters of agriculture. So this PLN 12 billion, taking into account that this benefit will represent an expenditure of PLN 64 billion over the years, is a drop in the ocean, so the financial implications are exactly the same - Grabovsky said.

According to a TVN24 guest, the NGO chairman’s proposal is “the best remedy for disqualification, for bringing out this cynicism in running these populist games.”