19:48 28 April 2026
Poland’s deficit will be largest in EU
Poland’s government underestimated its 2025 budget deficit by about 1 percentage point of GDP, according to reports sent to the European Union. Instead of the expected 6.3% of GDP, the deficit reached 7.3%, one of the highest in the EU. Lower than expected inflation at 3.6% reduced tax revenues, especially VAT, while weaker nominal GDP growth also hurt income. At the same time, spending rose faster than planned to 8.4%, driven by defense, social programs, and debt costs.
The government argues external factors caused the gap, but fiscal pressure remains. The deficit forecast for 2026 has already been raised to 6.8%, with risks linked to energy prices and geopolitical uncertainty.
(pb.pl)
