On September 28, 2024, the Council of Ministers adopted changes to the 2025 budget bill, adjusting the budget to the needs arising from the exceptional situation caused by the flood. Providing relief to flood victims became a government priority, a fact reflected in the increased budget allocated for flood prevention and disaster management, amounting to PLN 3.191 billion.
In light of this, the projected state budget revenues for 2025 have been increased by PLN 230 million, reaching PLN 632.848 billion. State budget expenditures will remain unchanged at the level of PLN 921.618 billion, while the budget deficit will be reduced by the aforementioned PLN 230 million, amounting to PLN 288.77 billion.
Increased Budget Revenue
The increased budget revenue is primarily due to the September 19, 2024, decree of the Minister of Finance, which extended the deadlines for advance tax payments for businesses affected by the flood. Changes to the excise tax law and other laws also had an additional impact on revenues.
Increased Spending on Disaster Prevention
On the expenditure side, the government has reallocated budget funds to increase the dedicated reserve for disaster prevention and management to PLN 3.191 billion, an increase of PLN 2.194 billion compared to the original project. This was achieved by reducing the reserve for state treasury obligations by PLN 400 million and the general reserve by PLN 279 million.
The general reserve, intended for sudden situations requiring immediate financial assistance, has been largely repurposed towards the flood reserve in order to meet current challenges related to the natural disaster.
Other Budget Changes
The Minister of Justice has cut expenditures of common courts by PLN 321 million, postponing some construction and IT investments to the next year. The Finance Minister also reduced the demand for funds from the Bank Gospodarstwa Krajowego’s loan guarantee programs by PLN 211 million.
The budget bill also includes self-corrections concerning a 5% increase in salaries in non-governmental units, along with adjusting judges’ salaries to the average second quarter 2024 level.
Investment in Housing and Science
Budget changes also envisage an increase in housing expenditures by PLN 420.2 million designated for support of social and communal construction. Additionally, PLN 50 million has been allocated to the National Science Centre, which plays a key role in funding basic research in Poland.
These changes reflect the government’s priorities, which include assistance for flood victims as well as long-term investments in social development, housing, and scientific research.
Source: https://managerplus.pl/rzad-wprowadza-zmiany-w-projekcie-ustawy-budzetowej-na-2025-rok-w-zwiazku-z-powodzia-18274
