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Polish president signs 2025 budget into law

17.01.2025 16:15
Polish President Andrzej Duda has signed into law the country’s budget for 2025, which expects the economy to grow 3.9 percent and targets 6.6 percent inflation, his aides said on Friday.
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The president's signature came after Poland’s parliament approved the financial plan in a final vote earlier this month.

The head of Duda's office, Małgorzata Paprocka, told reporters that the president signed the budget law into effect, but at the same time "decided to refer certain provisions to the Constitutional Tribunal" to assess their compatibility with the Polish constitution.

She added that Duda primarily "had doubts about provisions concerning changes to the budgets of the Constitutional Tribunal and the National Council of the Judiciary."

Under the financial plan approved by the head of state, Poland'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.

Government revenue is expected to total PLN 632.6 billion in 2025, with spending set at PLN 921.6 billion, Polish state news agency PAP reported.

The 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