Wednesday, December 4

Poland’s new budget to focus on energy investment

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Poland’s budget to increase spending on defence and healthcare

The Ministry of Finance has approved Poland’s budget for 2025. The main areas of investment are energy and infrastructure. Officials see these areas as the main drivers of the country’s economic growth. The government hopes that increased investment will help revive the market, which has yet to recover from the crisis years.
Specialist Minister Andrzej Domański commented on the main points of the new budget law. According to the document, the authorities have increased spending on a number of sectors that they consider to be the most important and promising for the country. Among them:
1. The defence sector received PLN 186 billion. This is equivalent to 4.7% of Poland’s GDP.
2. In 2025, the government allocated around PLN 222 billion to the health sector. By comparison, in 2024, the industry will receive PLN 31 billion less than the new budget.
3. Revenues for social programme implementation will also increase. The minister did not specify the exact amount of investment.
Officials note that in 2024, the Polish economy showed promising results. In general, the market was in recovery after almost two years of slowdown. Analysts expect the recovery to continue next year. The government is focusing on the energy and infrastructure sectors as key to economic growth. As part of this, the authorities have agreed to allocate PLN 4.6 billion for the construction of Poland’s first nuclear power plant. This project is a priority to ensure the country’s energy security. In addition, the NPP will reduce the use of fossil fuels, mainly oil and coal.

Poland's new budget

Domański also noted that transport infrastructure will receive a record amount of investment next year:
– investment in railways has increased by 35% compared to the current budget;
– funds allocated to the development of road infrastructure have increased by about 18%.
The government expects state budget revenues to be around PLN 632 billion, expenditures to amount to PLN 920 billion, and a deficit of PLN 289 billion.

Positive trends

Experts see signs of economic recovery. One proof of this is the unemployment rate. In the summer of 2024, it was 5%, which is considered a good indicator. Experts note that the percentage of unemployed among the working population is approaching a historical minimum. The only time it was lower was in 1990.
According to official statistics, about 765,000 people were registered as unemployed in the country in July. Poland has one of the lowest unemployment rates in the EU. In the third quarter, only the Czech Republic had a lower unemployment rate — 2.7%.

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