Spending is set at PLN 977.6 billion (EUR 225 billion) against revenue of PLN 695 billion (EUR 160 billion), capping the deficit at PLN 282.6 billion (EUR 65 billion).
The EU-measured general government deficit is projected at 7.1 percent of Poland's GDP.
Prime Minister Donald Tusk described the budget as "tight but responsible", citing Russia's war in Ukraine, the conflict involving Iran, and broader global turmoil as pressures on the country's finances.
He said the government would not let those constraints bring the Polish economy to a halt.
Defence will be a key spending priority, reaching PLN 198.1 billion (EUR 45.6 billion), equivalent to more than 4.5 percent of GDP.
Healthcare funding rises by PLN 26.3 billion to PLN 274.1 billion (EUR 63 billion).
Public security services, including police, border guards and the fire service, are allocated PLN 36.5 billion (EUR 8.4 billion).
Higher education and science will receive PLN 43.7 billion (EUR 10 billion), and PLN 62.4 billion (EUR 14.4 billion) is earmarked for roads and railways.
Energy investment was named as one of the budget's core priorities, part of the government's push to advance Poland's transition in the sector.
Finance Minister Andrzej Domański said the government expects economic growth of 3 percent next year, with inflation averaging 2.8 percent and unemployment at 6 percent by the end of 2027.
Tax revenue is forecast at PLN 622.4 billion (EUR 143.3 billion), driven by higher VAT and corporate tax receipts, which Domański attributed to stronger profitability among Polish firms.
Debt servicing costs are set to rise sharply, to PLN 107 billion (EUR 24.6 billion) — 17 billion more than this year — reflecting both a growing debt pile and the need to refinance older bonds issued at near-zero interest rates.
Domański also noted that the Constitutional Tribunal's budget was left out of the draft, as the court failed to submit a properly approved spending plan.
The document must be finalised and sent to parliament by 30 September.
Unlike other legislation, the budget law cannot be vetoed by the president.
Karol Nawrocki's only option would be to refer it to the Constitutional Tribunal; otherwise he is required to sign it within seven days of receiving the law from the Sejm (lower house of parliament).
(ał)
Source: PAP