Poland’s “funding” situation is thriving. With each successive government, numerous funds, agencies, and institutes operating outside the budget law continue to grow. The current government, despite declaring intentions for reform, is following in the footsteps of its predecessors, and the scale of the phenomenon has reached unprecedented proportions.
According to data from the Public Finance Institute, Poland currently has over 150 different funds, agencies, institutes, and centers. Among them, 20 funds operate within the National Economy Bank (BGK) outside the budget law. It is estimated that the debt of these funds will exceed 600 billion zlotys by 2028. The problem is that these funds are spent without parliamentary oversight, posing a serious threat to the transparency of public finances.
Oversight of Funds – Reality or Facade?
This topic surfaced in public debate during the “Rymanowski Breakfast” on Polsat News on December 8. Deputy Speaker of the Sejm Piotr Zgorzelski argued that “much has already been done in this area,” while Michał Wawer questioned these claims, pointing to the lack of real control over extrabudgetary funds. However, reality indicates that changes are only superficial.
Currently, out of 131 extrabudgetary entities included in the budget law, only one has been eliminated – the Cybersecurity Center. Simultaneously, the number of funds and agencies continues to grow, with the largest expenditures still occurring within BGK funds, which are projected to reach a record 155 billion zlotys outside the budget law in 2025.
Misinformation Surrounding the State Budget
There is also a problem with the imprecise understanding of the term “state budget.” In common perception, it refers to the entirety of public finances, while in reality, it encompasses only central public authority entities, such as ministries, offices, courts, and tribunals. Meanwhile, the central budget is only part of the public finance sector, and extrabudgetary entities are not included in it.
The average citizen is often unaware of the vast sums being spent outside the budget law. The real issue is not transparency—since the plans for the funds are available—but the lack of clarity and oversight over them. The current situation resembles the financial chaos of the PRL era, when 41 targeted funds operated in the 1980s. After Balcerowicz’s reforms, their number was reduced to a few dozen. Today, we have again 40 targeted funds and 91 other extrabudgetary entities.
BGK Funds – A Parallel Budget Without Oversight
The greatest danger comes from the funds and expenditure programs at the National Economy Bank. These are not described in the Public Finance Act and are not subject to planning, monitoring, or parliamentary control requirements. The financial plans of these funds are not attachments to the budget law, meaning that Parliament does not approve their expenditures or debt.
In 2025, BGK funds are projected to spend over 155 billion zlotys—huge amounts that remain outside formal parliamentary control. The lack of transparency in this area leads to disintegration of public finances, facilitates waste of resources, and creates space for political corruption.
Circumventing the Constitution and Threat to the Rule of Law
This situation constitutes a serious violation of the principles of public finance management as defined in the Polish Constitution. Article 219 of the Constitution clearly states that “the Sejm adopts the state budget for the budget year in the form of a budget law.” Meanwhile, BGK funds operate outside the budget law and on principles that are undefined in financial law.
Constitutional experts indicate that omitting financial plans of organizational units performing basic public tasks from the budget law violates this article. In other words, BGK funds represent a kind of “neo-budget,” similar to “neo-KRS” or “pseudo-TK”—structures that appear to operate in accordance with the law but actually violate fundamental constitutional principles.
Need for Reform and Restoring the Rule of Law in Public Finances
The only solution to this problem is to restore parliamentary oversight over BGK funds and integrate them into the budget law. Measures that merely enhance transparency are insufficient—specific legislative changes are necessary to eliminate the parallel budget operating outside the Constitution.
The new government, which promised to restore the rule of law, can no longer avoid this topic. If it truly wishes to eliminate the pathologies of previous years, it should start by reorganizing public finances and eliminating funds outside the control of the Sejm.
Source: Public Finance Institute
Source: https://managerplus.pl/budzet-panstwa-to-iluzja-ponad-150-instytucji-dziala-poza-ustawa-budzetowa-73914
