Warsaw cuts spending next year. The urban investments that have been awaiting for years will again move in time. There are two important roads missing for Prague. The city focuses on the metro and public transport.
The budget for the coming years will be very difficult. The PiS government is fulfilling its promises with local government money. Janosik* is increasing, and costs related to education reforms or waste management fall on the shoulders of local governmentssaid Rafał Trzaskowski announcing the Warsaw budget for 2020
*Janosikowe – it is a tax (payment) paid by local government units to the state budget on the basis of the Act of 13 November 2003 on the income of local government units by local government units, whose tax revenues exceed the indicators specified in the Act (Journal of Laws No. 203 item 1966).
Investment cuts and freezing of funds in other areas are necessary – he added.
Trzaskowski said that the costs of government tax reforms would reduce Warsaw’s income by PLN 810 million. In addition, the capital will lose on an increased Janosik (- PLN 158 million), insufficient – according to the town hall – educational subsidy (- PLN 212 million) and loss of income due to the liquidation of OFE (- PLN 35 million). In total the budget of the capital will receive PLN 1 billion 215 million less each year.
The planned revenues of Warsaw next year are PLN 18.191 billion (compared to 17.196 billion this year), and expenses PLN 19.928 billion (compared to 19.218 billion this year). Warsaw debt will increase by PLN 1.737 billion. The city will spend the most on:
Education – PLN 4.783 billion
Trannsport – PLN 3.598 billion
Health care – PLN 2.156 billion.
Prague has been wronged again?
Changes in the budget force sharp cuts on the capital. The list included the Prague bypass, which fell out of the plans again. It is worth remembering that Hanna Gronkiewicz-Waltz (since 2006!) Promised the key road for this region of the city, and then Rafał Trzaskowski. The roads plans must be shelved again. It is now known that this investment is valued at over PLN 1 billion.
The extension of the Świętokrzyska Route will also go to the freezer. The road at the back of the National Stadium was to break through Targowa Street and merge near the East Railway Station. The project has been suspended for today.
The third investment that will not be completed on time is the construction of the Sinfonia Varsovia headquarters. The spectacular facility at Grochowska St., which was supposed to be part of the revitalization program of Prague, will be built 2-3 years later than planned, in … 2028.
Among the large projects outside Prague, only the construction of the Rozmaitości Theater was postponed, which, together with the Museum of Contemporary Art, is to fill Defilad Square and create a new cultural center of Warsaw. The Town Hall will also cut money for local repairs or spread it over time.
“My program raises a question mark of one hundred zlotys extra for each student for extracurricular activities” admitted Trzaskowski and announced the cutting of the school renovation program by one hundred million zlotys.
Suspended investments can return at any time if it turns out that municipal finances will be in better condition. Trzaskowski wrote a letter to Prime Minister Morawiecki on this matter. He wants important road investments to be co-financed by the government. For now, the Council of Ministers has not responded to this appeal.
Investment for 2020 – But what will happen?
In the budget plans for the next year, the most funds for investments were allocated for the metro extension – PLN 838.9 million.
In second place was the completion of the construction of the Southern Hospital – 161.7 million PLN and the Museum of Modern Art – 59.1 million PLN.
The underground railway, and more specifically the planned third line, received the pool of money previously reserved for Trasa and Krasiński Bridge. The president has thus informed that he will not finance expensive road investments. In the case of the Warsaw metro, it counts on substantial funding from the European Union.
Warsaw’s debt will grow. We must do it in such a way as not to threaten the city’s finances. We are looking for new sources of financing, we talk with business (such as the Skra stadium), banks and European institutionsTrzaskowski.