Poles will pay more in taxes while millions will feel the pain of budget cuts in 2013, according to the government's newly adopted budget for next year, as reported by Rzeczpospolita.

Civil servants' and teachers' salaries will not increase while pensions will probably grow by less than 4 percent. Meanwhile, Poles will pay more to the country's coffers. It is expected the average Pole will pay roughly zł.7000 in taxes next year, compared to zł.6600 this year and zł.6400 in 2011. Citizens will lose, among other things, several tax reliefs.

There will be very few new jobs and wages will have a hard time keeping up with price increases. All this means that Poles will have to significantly tighten their belts next year.

For most civil servants, this will be the fifth year without a raise. The government might also be too optimistic about keeping unemployment stable, at around 13 percent this year with estimated wage growth at 1.9 percent.

Economists are skeptical, however. “Unemployment could reach 14 percent this year, and 15 percent next year,” said Stanisław Gomułka, chief economist at the Business Centre Club.

Poland A.M.