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Wednesday, January 15, 2025

State budget for 2025. The Sejm accepted the Senate's amendments

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In Thursday's votes, the Sejm adopted 28 Senate amendments to the budget act for 2025. An additional PLN 17 million will go to volunteer fire brigades, and PLN 70 million will go to a new special-purpose reserve to support small and medium-sized non-governmental organizations operating in small towns.

The Sejm finished work on the budget on Thursday. Now the bill will go to the president's desk. Support was obtained, among others, by: amendments that assume the allocation of PLN 17,555,000 from the special purpose reserve for provincial, district and municipal commands of the State Fire Service. PLN for volunteer fire brigades. Another Senate amendment adopted by the Sejm provides for the creation of a new special-purpose reserve in the amount of PLN 70 million for the National Freedom Institute – Center for the Development of Civil Society to support small and medium-sized non-governmental organizations operating in small towns.

Changes in multi-annual programs

MEPs also supported the amendment regarding the funds from the Fund for the Development of Physical Culture. It assumes the allocation of PLN 80 million to co-finance the implementation of tasks related to removing the effects of floods in tourism. In 2025, PLN 50 million will be allocated to investments in this area. The funds allocated for tasks in the field of physical culture will also increase by PLN 15 million, including: to prepare national team players to participate in the Olympic Games and world and European championships. Some of the amendments are intended to take into account changes in multiannual programs that result from resolutions of the Council of Ministers regarding these programs. This includes: for the construction of the Polish Maritime Rescue Training Center in Szczecin, an oncology hospital in Wrocław, modernization of the “MARIA” nuclear research reactor, expansion and modernization of the University Hospital in Bydgoszcz, programs to increase the development opportunities of the Słupsk Land for the years 2019–2026 and the development of north-eastern areas border areas for 2024–2030.

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The remaining amendments submitted by the Senate and adopted by the Sejm provide for, among others: increase in salaries of civil service employees, increase in expenses for financing the activities of Police liaison officers, changes in the budgets of the Supreme Court and the Supreme Administrative Court.

More money for defense

The budget for 2025 includes a record amount of PLN 124.3 billion for national defense, including an increase in the salaries of professional soldiers. Compared to 2024, this is an increase of PLN 6.2 billion. Together with the expenditure of the Armed Forces Support Fund, next year's expenditure on national defense will reach PLN 186.6 billion, i.e. it will be PLN 28.6 billion higher than planned for this year. This means that in 2025 expenses for Polish army will be 4.7 percent GDP; last year it was 4.2 percent. GDP. According to the assumptions of the Budget Act, the increase in wages next year will amount to 7%. By 5 percent the base amount for teachers' salaries and for state budget employees, including officers and soldiers, employees of ministries and central and provincial offices will increase. The employee remuneration fund will also be increased ZUS and KRUS. PLN 24.2 billion was allocated for the indexation of pension benefits from March 1, 2025, including for officers and the remuneration of retired judges and prosecutors. The budget also included PLN 221.7 billion for health care (including National Health Fund), which means an increase in expenses by nearly PLN 31 billion. Meanwhile, PLN 8.4 billion will go to the Active Parent program and the Family program 800 plus PLN 62.8 billion, and PLN 3.2 billion for widow's pension. On the 13th and 14th retirement PLN 31.5 billion will be allocated, and PLN 24.2 billion will go to the indexation of pension and disability benefits. The government will allocate approximately PLN 4.2 billion for housing-related purposes, and PLN 4.6 billion has been reserved for the investment process of the nuclear power plant. This money is to be used to recapitalize the company Polskie Elektrownie Jądrowe.

Deficit, public debt and inflation

In 2025, the deficit of the general government sector (government and local government institutions) will amount to 5.5%. GDP. The expected ratio of this sector's debt to GDP (according to the EU definition) will be 54.6%. at the end of 2024 and 59.8 percent at the end of 2025, i.e. below the reference value specified in the Treaty on the Functioning of the EU at 60%. State report public debt to GDP will amount to 43.3 percent in 2024 and 47.9 percent in 2025

The budget act was prepared on the assumption that in 2025 the GDP growth would amount to 3.9%, and inflation average annual – 5 percent According to the act, budget revenues will amount to PLN 632.6 billion, expenses will amount to PLN 921.6 billion, and the deficit will reach PLN 289 billion, or 7.3%. GDP.

The bill will now go to Andrzej Duda. The president has one week to sign it, and he can also refer the act to the Constitutional Tribunal.



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