Poland’s state budget expenditures for the first eight months of 2024 soared to PLN 498 billion, reflecting a 27.6% year-on-year increase, according to the Ministry of Finance. This accounts for 57.5% of the government’s annual spending plan, marking a significant uptick of PLN 107.6 billion compared to the same period in 2023.
Key spending areas contributing to this rise include the Social Insurance Institution (ZUS), which absorbed PLN 104.2 billion, or 57.7% of the planned budget. This increase was driven by the introduction of the Family 800+ program, which raised parental benefits from PLN 500 to PLN 800 starting in January 2024.
Other significant expenditures include general subsidies for local government units, which accounted for PLN 86.9 billion, or 73.7% of the plan. Notably, a portion of these funds was allocated to salary increases for teachers, who saw a 30% wage hike this year.
The defense sector also saw a marked rise in spending, with PLN 58.4 billion allocated, reflecting a PLN 10.5 billion increase compared to last year. This surge is tied to military equipment acquisitions and financial support for the Armed Forces Support Fund.
In addition, the Ministry highlighted spending on State Treasury debt, which reached PLN 37.5 billion, up 56.3% from last year, due to increased debt servicing costs. Other notable expenditures include funds for higher education, internal affairs, and EU contributions.
The significant rise in budget spending is expected to shape fiscal policy as the government navigates growing demands in social services, defense, and public sector wage increases.
Source: ISBnews
