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Poland’s Council of Ministers adopts draft budget law for 2025

Poland’s Council of Ministers adopts draft budget law for 2025

17:06, 28.09.2024
  Michał Zdanowski/rl;
Poland’s Council of Ministers adopts draft budget law for 2025 The Polish Council of Ministers has adopted the draft budget law for 2025, forecasting a budget deficit capped at PLN 288.77 billion (€65.1 billion), the Prime Minister’s Office announced on Saturday.

The Polish Council of Ministers has adopted the draft budget law for 2025, forecasting a budget deficit capped at PLN 288.77 billion (€65.1 billion), the Prime Minister’s Office announced on Saturday.

Prime Minister Donald Tusk (L) during a cabinet meeting at the Chancellery of the Prime Minister in Warsaw. Photo: PAP/Radek Pietruszka
Prime Minister Donald Tusk (L) during a cabinet meeting at the Chancellery of the Prime Minister in Warsaw. Photo: PAP/Radek Pietruszka

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The projected state revenues stood at 632.6 billion złoty (€142.3 billion), with expenditures at 921.6 billion złoty (€207.9 billion) and an expected deficit amounting to no more than 289 billion złoty (€65.1 billion). These figures remain largely unchanged despite some adjustments to revenue planning.

The government attributed the revisions to a new regulation, introduced in September 2024, which extended tax payment deadlines for entities impacted by flooding earlier in the year. As a result, the budget includes additional funding for disaster response.

“A special reserve for preventing and mitigating the effects of natural disasters was increased by 2.194 billion złoty (€493 million) and will amount to 3.191 billion złoty (€718 million),” the statement added.

Furthermore, the Ministry of Justice delayed a number of investments, reducing its budget by 321 million złoty (€72.2 million). The general reserve was also reduced by 279 million złoty (€62.8 million).

Some sectors saw their funding boosted, namely spending on housing that received a 420 million złoty (€94.5 million) boost, bringing the total allocation to 4.7 billion złoty (€1.06 billion). Meanwhile, the National Science Center received an additional 50 million złoty (€11.2 million) to support basic research grants.

Poland's healthcare sector, in turn, will receive a record 221.7 billion złoty (€49.9 billion) in 2025, an increase of 31 billion złoty (€7 billion) compared to 2024. This will account for at least 6.5% of the country's GDP. Defense spending is also set to rise to 186.6 billion złoty (€42.1 billion), representing 4.7% of GDP, with the funds going towards salaries for professional soldiers and armed forces modernization.

“We adopted amendments to the 2025 budget. These are mainly new funds for flood victims and reconstruction,” said Minister of Funds and Regional Policy Katarzyna Pełczyńska-Nałęcz on social media.

The draft law will now be submitted to parliament for further debate and approval.