Minister of Finance Andrzej Domański on aid for flood victims and changes in the budget

On Saturday, the Council of Ministers adopted the draft budget act for 2025k. The specific reserve for counteracting and removing the effects of natural disasters was increased to nearly PLN 3.2 billion.

The Minister of Finance spoke more about helping flood victims and related changes in the budget in “Fakty po Faktach” on TVN24 Andrzej Domański from the Civic Coalition.

– There is absolutely money, the state budget is prepared to finance reconstruction and eliminate the effects of the flood. Let me remind you that we have already secured PLN 2 billion in the 2024 budget and we are ready to increase this amount even further – he said.

– In addition, in accordance with the changes adopted yesterday in the Budget Act for 2025, the special reserve has been increased, which is used to finance the removal of the effects of floods or the prevention of natural disasters. It increased to the amount of PLN 3 billion 191 million, (…). In addition, there is PLN 738 million, which, together with the local government, we want to redirect from a special reserve to those regions affected by the flood, he continued. He added that in addition, there is also EU money, as well as money from a project with the participation of the World Bank, which will allow for the reconstruction of destroyed infrastructure.

The Minister of Finance also said that it was not decided on Saturday that the 2024 budget would be amended, but added that such a decision “is an option.”

Domański also explained that a total of four changes to the draft budget act for 2025 were adopted on Saturday.

– Firstly – more funds for housing. Secondly – more funds for the National Science Center. We secured a little more funds, PLN 40 million more, for the Office for Foreigners. And this huge change, the most important one, i.e. over PLN 2 billion more for the reserve from which we finance the reconstruction of areas that were destroyed during the flood – he added.

He also talked about the general condition of the Polish economy and forecasts for its development. – We estimate that in 2024 the economy will grow at a rate of 3.1 percent, but next year it will accelerate to 3.9 percent. So we will continue to maintain our position as the fastest or one of the fastest growing European Union countries – he added.

On Saturday afternoon on social media of the Minister of Funds and Regional Policy Katarzyna Pełczyńska-Nałęcz announced that the government has adopted amendments to the draft budget for 2025. “These are primarily new funds for flood victims and for reconstruction. But there is also an important change in another area: the budget reserve for construction has been increased by PLN 421 million,” she wrote.

The first version the government adopted the draft budget for 2025 at the end of August.

In a later announcement from the Prime Minister's office, it was announced that state budget revenues in 2025 would amount to PLN 632.85 billion, expenditure would remain unchanged and amount to PLN 921.62 billion, and the budget deficit would amount to PLN 288.77 billion. “Macroeconomic data do not change,” we read in the statement.

The Prime Minister's Office announced that the changes in the revenue plan for 2025 result primarily from the adopted regulation of the Minister of Finance of September 19, 2024, which extended the payment deadlines for advance payments for certain taxes for 2025 for entities affected by the flood.

Moreover, “the specific reserve for counteracting and removing the effects of natural disasters has been increased by PLN 2.194 billion and will amount to PLN 3.191 billion.” “The funds planned in reserves for which such a possibility existed and which are not directly dependent on objective factors were reduced, i.e., among others, the reserve for liabilities of the State Treasury (reduction by PLN 400 million), the general reserve (reduction by PLN 279 million). PLN),” it was written.