Leszek Balcerowicz Calls to Eliminate 800 Plus Program

Economist Leszek Balcerowicz called for the total elimination of the 800 plus family support program during a broadcast on Radio ZET, arguing that Poland’s fiscal deficit and rising debt servicing costs make current social spending levels unsustainable without severe consequences.

Public finances in Poland face severe pressure as structural deficits outpace economic growth, according to former finance minister and National Bank of Poland president Leszek Balcerowicz. Speaking in an interview with Bogdan Rymanowski on Radio ZET, Balcerowicz addressed the state of the national budget against the backdrop of recently approved government spending plans.

The government’s draft budget for 2027 projects state expenditures at 977,6 mld zł against revenues of 696,4 mld zł, yielding a planned deficit of 281,2 mld zł. While current administration officials have confirmed that major social transfers—including 800 plus, the active parent initiative, and additional retirement benefits—will continue, critics argue the trajectory remains unsustainable.

Escalating Debt Servicing Costs and the European Deficit Comparison

Poland currently maintains a high fiscal deficit in Europe, a reality that has driven up the cost of managing the national debt. Balcerowicz contrasted current expenditure with historical figures to illustrate the rapid acceleration of these obligations.

Translated from the interview, those figures show that debt servicing expenses have surged past 106 mld, compared to 29,1 mld złotych in 2001. Balcerowicz emphasized that the numbers are striking and represent a growth that cannot continue without severe repercussions.

Targeting 800 Plus and Post-Socialist Expenditure Levels

At the center of Balcerowicz’s proposed austerity measures is the 800 plus child allowance program, which he argues lacks economic justification and fails to target those truly in need. When asked directly whether he would abolish the program, Balcerowicz answered affirmatively, pointing out that the state already maintains family allowance frameworks.

Leszek Balcerowicz told Radio ZET, Yes, because we already have family allowances anyway, so why even have that on top of it?

The economist argued that public spending in Poland remains the highest among all post-socialist nations, placing the country near the top of European welfare spending alongside nations like Italy, Austria, and Belgium. Beyond the child subsidy, Balcerowicz advocated for the removal of additional annual pension payouts, including the 13th and 14th pensions.

Photo: Bankier.pl

In his discussion with Bogdan Rymanowski, the former deputy prime minister and former head of the Council of the Forum of Civil Development noted that the country occupies sixth place in Europe regarding the scale of social expenditures. He remarked that before surpassing neighboring nations like the Czech Republic, Poland had already grown into a leader in social outlays, parts of which lack both social utility and economic rationale. Rejecting arguments that programs like 500 plus and 800 plus grant dignity to Polish families, Balcerowicz dismissed such claims as mere slogans, asking rhetorically whether dignity could truly be valued at the price of national indebtedness.

Privatization and State Oversight of Public Enterprise

Beyond transfer payments, Balcerowicz addressed state ownership, stating that he believes the state should not have ownership in any field. He argued that political appointees managing public enterprises lack appropriate incentives to prevent financial losses because they bear no personal risk.

Pointing to state-controlled hospitals that operate at a loss, Balcerowicz characterized the governance structure as an irresponsibility in oversight. He maintained that no empirical or logical justifications support state ownership of commercial banking institutions, many of which were re-nationalized under previous administrations.

Monetary Policy and the Debate Over Public Subsidies

Addressing inflation and monetary controls, Balcerowicz asserted that price stability depends directly on controlling the expansion of the money supply and commercial bank lending. He argued that credit growth should be kept to a strict band of 2 to 3 percent annually, placing responsibility on the National Bank of Poland to restrain inflationary pressures that have previously reached double digits under current leadership.

Photo: Radio Zet

On energy policy and fuel price interventions, Balcerowicz warned that extending consumer relief measures amid record budget deficits merely shifts the financial burden onto taxpayers. Balcerowicz asserted that unfunded state giveaways ultimately force wider public borrowing rather than generating genuine economic relief.