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Polish parliament approves 2025 budget in final vote

10.01.2025 10:00
Poland’s parliament has approved the country's 2025 budget, which expects the economy to grow 3.9 percent, with inflation targeted at 5 percent.
The lower house of Polands parliament in session on Thursday, Jan. 9, 2025.
The lower house of Poland's parliament in session on Thursday, Jan. 9, 2025.Photo: PAP/Paweł Supernak

An absolute majority of MPs backed the financial plan in a final vote on Thursday evening, endorsing 28 minor modifications introduced by the upper house of parliament, the Senate, state news agency PAP reported.

The country’s budget deficit is expected to be no more than PLN 289 billion (EUR 67.7 billion, USD 71. billion) this year, and the target for the general government deficit is 5.5 percent of GDP under the financial plan approved by the bicameral legislature.

Government revenue is expected to total PLN 632.6 billion in 2025, with spending set at PLN 921.6 billion.

The budget bill now goes to President Andrzej Duda for signing into law.

The approved budget ensures more than EUR 170 billion in financing for the government’s key social assistance projects, including PLN 62.8 billion for the "Family 800-plus" child benefit programme, officials have said.

Meanwhile, health spending is expected to total PLN 221.7 billion this year, representing 6.5 percent of GDP, and defence spending is expected to reach PLN 186.6 billion, or 4.7 percent of GDP, according to officials.

The financial plan sets aside PLN 3.2 billion for flood protection and cleanup after this year's floods, Finance Minister Andrzej Domański has said.

Speaking in August last year, Domański said: "In 2025, we will set aside a record PLN 222 billion for healthcare, up from PLN 191 billion in 2024." 

Prime Minister Donald Tusk has told reporters: "We've set ambitious goals for the budget. Our aims include keeping inflation under control, achieving record economic growth, raising the minimum wage in real terms, and moving forward with key investment projects, particularly in energy and rail infrastructure."

Tusk added: "We will build whatever is necessary for national security and energy security. We've also committed to record-high defence spending, amounting to nearly PLN 190 billion."

The prime minister also promised pay raises for government and public sector employees, including teachers, the PAP news agency reported.

He described the government's financial plan for 2025 as "a budget of development and strength."

(gs)

Source: IAR, PAP