Biznes Fakty
Government reshuffle. Andrzej Domański appointed Minister of Finance and Economy
Prime Minister Donald Tusk revealed modifications to the Council of Ministers shortly after 10 a.m. The current Finance Minister, Andrzej Domański, will transition to the role of Minister of Finance and Economy. „This marks the first occasion in history that both economic and financial decisions are centralized,” Tusk stated.
„The most significant structural initiative is the establishment of a genuine financial and economic hub. There will be a unified center functioning transparently and executing a cohesive economic policy,” the Prime Minister conveyed.
– The present Minister of Finance, Andrzej Domański, will assume the role of Minister of Finance and Economy – the head of government added.
„This is the inaugural initiative of its kind, possibly in the entire history of democratic Poland, to unify economic and strictly financial decisions in a single authority. It will be a centralized hub operating transparently and carrying out a comprehensive financial and economic strategy,” he stressed.
While sharing details about the government reshuffle on Wednesday, Tusk expressed optimism that, in line with the agreements made with President Andrzej Duda, the new ministers would take their oaths on Thursday.
– The first cabinet meeting with the new lineup will occur on Friday – Tusk announced.
He assured reporters that new members of the Council of Ministers would be „available” starting Monday.
Domański as Minister of Finance
Andrzej Domański has held the position of Minister of Finance in Prime Minister Donald Tusk’s cabinet since December 13, 2023. Prior to this, he was the chief economist at the Civic Institute, a think tank acting as the expert foundation for the Civic Platform party, and contributed to the development of the Civic Platform’s economic agenda. He successfully ran for a seat in the last parliamentary elections in 2023 on the Civic Coalition (KO) ticket and became a member of the Sejm for the 10th term.
Minister Domański’s initial responsibility was to draft the budget for 2024. In the proposal submitted by Donald Tusk’s cabinet, the budget deficit was raised to PLN 184 billion, compared to PLN 164.8 billion in the draft put forth by the outgoing government of Mateusz Morawiecki. Domański mentioned that factors contributing to the deficit increase included „the unprecedented 30% salary increases for teachers,” alongside a 20% increase for the public sector.
„We aim to reduce the deficit in the coming years,” stated the Minister of Finance, announcing a „comprehensive audit of all ministries” to identify „natural savings.” Ultimately, however, the 2024 budget required amendments, and the deficit was adjusted to PLN 240.3 billion.
In March 2024, Domański, together with Health Minister Izabela Leszczyna, unveiled a plan for modifications to the healthcare contribution for entrepreneurs. According to the Minister of Finance, an anticipated 93% of entrepreneurs were expected to benefit from these alterations. The budget impact was projected at PLN 4-5 billion. Ultimately, the changes to the contribution were implemented in two phases – one involved, among other things, the removal of the obligation to apply healthcare contributions on revenue from the sale of fixed assets. This measure took effect on January 1, 2025. However, more significant adjustments to the healthcare contribution planned for 2026, intended to lower contributions for entrepreneurs, were vetoed by President Andrzej Duda and will ultimately not be enacted.
Domański played a pivotal role in convincing the European Union to revise its fiscal regulations, which allowed for a more lenient approach to military expenditures when evaluating the budgets of member states. Ultimately, in 2025, the EU determined that a member state could request an exit from the excessive deficit procedure, citing increased military spending. Poland submitted such a request.
In the spring of 2024, the Minister of Finance also announced modifications to the capital gains tax, commonly referred to as the Belka tax, along with a reform of local government financing. However, the Ministry of Finance’s proposals to introduce a tax-free allowance on capital gains did not materialize, although the ministry continues to report on ongoing efforts. Nonetheless, a reform of local government financing was enacted; the changes took effect at the beginning of 2025.
„The fundamental principle is to remove politics from the flow of funds to local governments. We aspire to base local government revenue on the local tax base, which includes the income of citizens living in a specific area and the earnings of businesses, rather than on their share of the tax,” Domański explained while presenting the reform’s principles.
In April 2024, Andrzej Domański fulfilled another electoral promise by reducing the VAT rate on cosmetic services.
At the end of August 2024, the draft budget for 2025 was released. It anticipated revenues of PLN 632.6 billion, expenditures of PLN 921.6 billion, and a deficit ceiling of PLN 289 billion. In the final draft submitted to the Sejm, budget revenues reached PLN 632.85 billion, expenditures remained constant, and the deficit was established at PLN 288.77 billion.
– The budget
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