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Polish government approves revised 2025 budget, sends it to parliament

08.10.2024 10:00
The Polish government has approved a revised version of the country's budget for 2025, which expects the economy to grow 3.9 percent, with inflation targeted at 5 percent.
Polands Finance Minister Andrzej Domański.
Poland's Finance Minister Andrzej Domański.Photo: Przemysław Chmielewski/Polish Radio

After the revision, the country’s budget deficit is expected to be no more than PLN 288.77 billion (EUR 67.2 billion, USD 73.5 billion) next year, and the target for the general government deficit is 5.5 percent of GDP, state news agency PAP reported.

Government revenue is expected to total PLN 632.85 billion in 2025, with spending set at PLN 921.62 billion.

The proposed 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 represent 6.5 percent of GDP, and defence spending is expected to stand at 4.7 percent of GDP next year, 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 said at the end of last month.

Speaking in late August, 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 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 as "a budget of development and strength."

(gs)

Source: IAR, PAP