The United Right government (PiS, Solidary Poland and Gowin’s Poland Together), led by Beata Szydło and now by Mateusz Morawiecki, pursued and continues to pursue the most socially oriented policy since the Round Table. However, political opponents of the ruling camp criticise it for populism and for “winning voters” with the 500+ programme.
The “Family 500+” programme – what effects has it produced?
PiS’s economic policy is a constant subject of discussion in all influential media in Poland. It is also frequently discussed on portals such as Salon24. The flagship project of the ruling camp’s economic policy is the “Family 500+” programme. Every family is entitled to money from this programme for its second and each subsequent child, and, if the income threshold is not exceeded, also for its first child. Therefore, the programme was not intended solely as assistance for the poorest families, but rather as a kind of payment from the state for raising a child. The main goals of the 500+ programme were to eliminate extreme poverty and increase the number of births.
After two years of PiS government, it is already possible to discuss the economic effects of the 500+ programme. Families with many children, as well as families living in poverty, benefited most from the programme. Moreover, as the demographic data published by GUS show, the number of births is increasing year on year. Therefore, the pro-demographic goal of the 500+ programme can be considered achieved.
Economic effects of the 500+ programme
A side effect of the “Family 500+” programme is also that it stimulates economic growth. This ambitious project has become a kind of “driving force” for the Polish economy, since most of the funds from the programme are spent on consumption. In practice, this means that approximately 23% (VAT) of the funds allocated to the 500+ programme return to the state budget. It is also worth emphasising that PiS’s flagship project contributes to GDP growth. Evidence of the programme’s success is that the Lithuanian government, encouraged by Poland’s economic growth, introduced a programme modelled on the “Family 500+” project.