6:35 29 May 2026
Budget under strain
Poland’s budget deficit is being significantly affected by record levels of defence spending, Finance and Economy Minister Andrzej Domański said during the Polish Economic Congress. The country currently allocates around 5 percent of GDP—approximately PLN 200 billion annually—to military expenditure, one of the highest levels in NATO. Domański argued that the deficit would be considerably lower if Poland spent closer to the European Union average, but stressed that security considerations leave little room for cuts.
The government nevertheless remains committed to gradually improving public finances in the coming years. The remarks highlight the growing challenge facing policymakers as they attempt to balance military modernisation, fiscal discipline and economic growth amid continued geopolitical uncertainty in the region.
