CIT hike is a bold but insufficient step toward fiscal consolidation

Poland's public finances are under strain and reducing the deficit is becoming a necessity, with a planned corporate income tax (CIT) hike seen as a step in that direction. However, genuine fiscal tightening remains politically difficult, and the growing share of mandatory spending narrows the government's room for manoeuvre. Analysts say the CIT increase alone is far too small to stabilise the budget situation.

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