The government has adopted the draft budget for 2026

Minister of Finance on the draft budget for 2026 TVN24

The government has approved the draft budget for 2026, as announced by Katarzyna Pełczyńska-Nałęcz, Minister of Funds and Regional Policy. Finance Minister Andrzej Domański stated that the budget deficit for the upcoming year will surpass PLN 270 billion.

During a press conference on Thursday, the Finance Minister revealed that the government has greenlit a preliminary version of the budget act for 2026. He noted that Poland is currently the fastest-growing major economy in the EU, with inflation decreasing more swiftly than anticipated.

The government has approved the draft budget for 2026

The Finance Minister indicated that the proposed budget deficit for 2026 is expected to be around PLN 271.7 billion, equating to 6.5% of GDP.

He further stated that the projected revenues for the budget in 2026 will be approximately PLN 647 billion, while expenditures are anticipated to reach around PLN 918.9 billion.

„When assessing the debt, it’s crucial to recognize that this figure will be influenced by the loan segment of the National Public Procurement Program (KPO); without it, the debt would be 3.1 percent lower. If the deficit limit for 2026 is fully utilized, the public debt-to-GDP ratio at year-end will be 53.8 percent, with the net public debt ratio standing at 52.6 percent,” Domański explained.

He also mentioned: „Naturally, both ratios remain below the prudential threshold established by the Public Finance Act. If we adjusted these figures for the loan component of the National Debt Collection Program, we would be at 49.5 percent. The projected debt-to-GDP ratio, as per EU definitions, will reach 66.8 percent of GDP by the close of 2026. After accounting for the loan segment of the National Debt Collection Program, it will be 63.7 percent.”

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The Minister of Finance on the draft budget for 2026

– In the macroeconomic framework adopted in the 2026 budget act, economic growth for next year is projected at 3.5 percent – stated Domański.

He added that the average annual CPI inflation for the coming year is forecasted to reach 3 percent, with wages expected to rise by 6.4 percent, resulting in a significant real increase in the wages of Poles by 3.4 percent.

The Finance Minister opined that the 2026 budget represents a budget focused on security, investment, and support for citizens. „In many respects, in terms of priorities, it continues the budget we established for 2025,” he remarked.

„Economic growth is gaining momentum – we anticipate GDP growth to rise by 3.4 percent this year. (…) In the adopted macroeconomic scenario for 2026, economic growth next year will attain 3.5 percent,” he commented.

Domański on defense expenditures

The draft budget for 2026 provides for defense expenditures of PLN 200 billion, or 4.8% of GDP.

He announced that the budget plan for 2026 includes defense spending of PLN 200 billion, representing 4.8 percent of GDP. This figure encompasses allocations for the Ministry of National Defense and the Armed Forces Support Fund.

„In the 2026 forecast and budget act, security remains our utmost priority. Hence, we are dedicating a historic PLN 200 billion to defense,” Domański emphasized during a press conference following the government meeting.

Domański on health and housing

– Another clear priority of this budget is health, with total expenditures for 2026 amounting to PLN 247.8 billion, which is over PLN 25 billion more than in 2025 – stated Domański.

He mentioned that a record budget allocation of PLN 6.7 billion is planned for the housing sector.

– Overall, we plan to allocate PLN 6.7 billion, which is PLN 2 billion more than this year and nearly double the total expenditures in this area from 2020 to 2023 – noted the minister.

The government has projected an 8% increase in investments as part of its macro assumptions.

The Finance and Economy Minister indicated that the debt-to-GDP ratio in the EU is expected to be 66.8% by the end of 2026.

Domański assured that the 2026 budget allocates funds for social programs such as Active Parent, widow’s pension, 800 plus, 13th and 14th pensions, and the indexation of benefits.

Prior to the commencement of the government meeting focused on the draft budget for the coming year, Prime

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