The budget proposal for Poland in 2025 includes record defense spending of 187 billion zlotys ($48.7 billion), aiming to strengthen the country’s security amidst high concerns due to its proximity to war-torn Ukraine. Prime Minister Donald Tusk described the budget as “generous” and focused on supporting economic growth. The defense spending would constitute 4.7% of the gross domestic product, making Poland a leading contributor in NATO and the European Union. This proposal surpasses the previous record set in the 2024 budget, showing Poland’s commitment to enhancing its security measures.
The budget for 2025 will focus on both construction and force, with significant investments planned to reinforce Poland’s security, including energy security. The country has been actively supporting Ukraine against Russia’s invasion and is acquiring military equipment such as fighter jets, tanks, and missile defense systems from the U.S. and South Korea. Additionally, about 4.6 billion zlotys ($1.2 billion) will be allocated for the construction of Poland’s first nuclear plant, set to be operational in 2035. This move is part of Poland’s efforts to reduce its reliance on energy sources from Russia, such as gas and oil.
In terms of economic growth, Poland is expecting a 3.9% growth rate in 2025, up from 3.1% in 2024. The inflation rate is projected to be around 5%, higher than the previous year. The budget deficit is estimated to reach 289 billion zlotys ($75.3 billion), underscoring the government’s ambitious spending plans. The budget proposal will be subject to debates with trade unions and will require approval from Poland’s lawmakers and President Andrzej Duda. These discussions will be crucial in shaping the final budget plan and ensuring its alignment with national priorities.
The significant increase in defense spending and infrastructure investments signal Poland’s commitment to bolstering its security and reducing dependence on foreign energy sources. This strategy aligns with Poland’s stance in supporting Ukraine and enhancing its own defense capabilities. The proposed budget for 2025 reflects a proactive approach towards economic growth and security, despite the challenges posed by the current geopolitical climate. The debates and approvals required for the budget plan will be key in determining the allocation of resources and the overall direction of Poland’s economic and security policies in the coming year.
