Poland's cabinet approves 2027 budget and tax reform plan

Poland's government approved its draft budget for 2027 on Tuesday, forecasting economic growth of 3 percent and inflation of 2.8 percent, Finance and Economy Minister Andrzej Domański said.

Poland's Finance and Economy Minister Andrzej Domański speaks at a news conference in Warsaw on Tuesday, following a cabinet meeting that approved the 2027 budget and a package of tax changes.

Photo: PAP/Paweł Supernak

Domański told a news conference the growth was becoming more balanced, no longer relying solely on strong consumer spending but increasingly driven by a pickup in investment.

The budget allocates PLN 198 billion to defence (EUR 45 billion), equivalent to 4.5 percent of GDP, along with PLN 274 billion (EUR 63 billion) for healthcare and PLN 46 billion (EUR 10.5 billion) for science and higher education.

💬 Minister Finansów i Gospodarki @Domanski_Andrz:
W 2027 roku wydatki na obronność sięgną 198 mld zł i przekroczą 4,5% PKB. Nakłady na ochronę zdrowia wyniosą 274 mld zł, co oznacza wzrost o 26 mld zł względem 2026 roku.

— Kancelaria Premiera (@PremierRP) September 29, 2026

The cabinet also approved a package of tax changes, including a new intermediate income rate.

Domański said at least 3.5 million taxpayers would benefit from the change, first announced by Prime Minister Donald Tusk in mid-August.

To help finance the reform, the government plans to raise corporate tax for large companies, the so-called solidarity levy on high earners from 4 percent to 5 percent, along with changes to a simplified flat-rate scheme used by some businesses.

The finance ministry estimates the changes will cost the budget almost PLN 57.7 billion (EUR 13.2 billion) over 10 years, while overall state revenue is expected to rise by close to PLN 26.5 billion (EUR 6 billion).

(ał)

Source: PAP