17:36 1 April 2025
Poland’s deficit higher than expected, government plans in question
In 2024, Poland's general government deficit rose sharply to 6.6% of GDP—its highest since the COVID-19 pandemic—surpassing both the previous year’s 5.3% and the government’s estimate of 5.7%. Key drivers included increased defense spending, flood recovery, and expanded social programs like the switch from 500+ to 800+ child benefits.
Budget sector wage hikes and a 12.2% pension indexation also added pressure. The jump puts Poland off track from its EU-approved plan to cut the deficit to 3% in coming years. Economists question the feasibility of this path without major spending cuts. Although new EU rules may ease some pressure by excluding certain defense costs, Poland remains under excessive deficit procedures.
(pb.pl)
