Completion of the budgetary procedure

Consultations with citizens regarding the budget are finished. The economists who attended the meetings expressed a positive opinion of the document. They unanimously highlighted that this budget ensures stability, security and development in times of crisis and unfavourable decisions of central authorities for local governments. The final form of the draft budget was adopted after the introduction of auto-amendments, which have just been submitted.

For the second year in a row, discussions on the city budget took the form of an online debate. The discussion about city finances was based on three sections: budget idea, investments and savings.

“The era of investments is about to end. We are passing into the era of administration, raising current expenses and maintaining whatever we have. This is the effect of centralisation, which is advancing because the government wants to and will decide who will build and what will be built,” said Piotr Krzystek, the Mayor of Szczecin. 

It should be reminded that the balancing of revenues and expenditures of the draft budget was significantly affected by decisions of the central authorities and, consequently, by a decrease in revenues from PIT by PLN 129 million. Another problem was the growing operating costs of the city caused, among other things, by increases in fuel, energy and food prices, as well as by wage pressure.

“This is a budget for modern times. A development- and continuity-oriented one, which will allow progress to be maintained. It provides stability, security and the ability to deliver public services,” emphasised Magdalena Zioło, PhD, economist.

“We are living in times of radical uncertainty and heightened risk. Although I recognise the dramatic nature of drafting this budget, it is an intelligent and professionally structured document. I like the motto: ‘We are moving on’. This is true, and it is visible in the budget”, stressed Prof Stanisław Flejterski, economist.

Balancing the budget became possible through adjusting (mostly inflationary) charges for municipal services and local taxes along with reducing the city’s operating costs. The latter resulted in savings of over PLN 31 million.

“We have taken the approach of maintaining the city’s development and financial credibility, hence the struggle to maintain the balance between current income and current expenditure. A struggle that required a number of challenging decisions”, commented Dorota Pudło-Żylińska, City Treasurer.

Despite these difficulties and shortfalls, due to the observance of financial discipline, the draft budget assumes maintaining an operating surplus of PLN 209 million.

“Income independence is being severely curtailed. There have already been several changes, and more are on the way. For years, the New Deal will adversely affect what Szczecin is capable of doing. More opportunities are and will be forcibly taken away from the City by the Government”, said Prof Beata Zofia Filipiak, economist.

“My opinion is highly negative about the unpredictability of government decisions, which are supposed to benefit certain social groups and buy their support, while in reality they shift the burden of financing to local governments”, continued Prof Dariusz Zarzecki, economist.

The live coverage of the debates was followed by several hundred viewers, and in total over a dozen thousand people watched the replayed recording of the public consultation. Altogether, during the social consultations, which can be viewed on the website budzet2022.szczecin.eu and on the Facebook profile of the Mayor of Szczecin, the invited guests answered several dozens of questions sent by residents. The most exciting issues among the internet users were those concerning savings and expenditures.

“We all have to get used to the fact that it will be necessary for us to save. Both consumers and companies; because in Poland only the government does not save, and yet we are the guarantors of these loans. So fasten your seatbelts! It is going to be a wild ride and the necessity to save money”, concluded Prof Aneta Zelek, economist.