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Polish MPs approve 2025 budget

06.12.2024 21:45
Polish lawmakers on Friday approved the country's budget for 2025, which expects the economy to grow 3.9 percent, with inflation targeted at 5 percent.
Polish Finance Minister Andrzej Domański speaks in parliament on Friday.
Polish Finance Minister Andrzej Domański speaks in parliament on Friday.Photo: PAP/Rafał Guz

The budget deficit is expected to be no more than PLN 289 billion (EUR 67.7 billion, USD 71. 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 632.6 billion in 2025, with spending set at PLN 921.6 billion.

The budget bill was backed by 232 members of the lower house of Poland’s parliament, while 207 voted against and three abstained, public broadcaster Polish Radio’s IAR news agency reported.

The bill now goes to the upper house, the Senate, for further debate.

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 total PLN 221.7 billion next 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 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 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