Poland's budget expenditure rises 31.9% year-on-year to PLN 373.8 Billion by June

Poland’s state budget expenditures reached approximately PLN 373.8 billion in the first half of 2024, marking a 31.9% increase compared to the same period in 2023, the Ministry of Finance reported. This amount represents 43.1% of the planned annual expenditure.

Key expenditure areas included:

• Social Insurance Institution: PLN 77.3 billion (42.8% of the plan)
• General subsidies for local governments: PLN 68.5 billion (58.1% of the plan)
• National Defense: PLN 42.8 billion (36.4% of the plan)
• State Treasury debt servicing: PLN 26.6 billion (40.1% of the plan)
• Voivode budgets: PLN 26.3 billion (54.9% of the plan)
• Internal matters: PLN 20.5 billion (46.0% of the plan)
• EU own funds: PLN 16.2 billion (47.1% of the plan)
• Higher education and science: PLN 15.2 billion (48.2% of the plan)

The increase in Social Insurance Institution spending, up by approximately PLN 30.2 billion, was largely driven by the “Family 800+” program, which raised the parental benefit from PLN 500 to PLN 800 starting January 2024. Additionally, the general subsidies for local governments saw an 18.9 billion increase due to a 30% salary hike for teachers and new funds for local development.

The Voivode budgets saw a rise of PLN 5.7 billion, mainly due to increased family benefits and other social supports. National defense spending increased by PLN 7.2 billion, reflecting allocations to the Armed Forces Support Fund for military equipment purchases.

Furthermore, PLN 2.1 billion more was allocated to EU own funds, primarily due to adjustments and underpayments to the EU budget. The handling of State Treasury debt also saw an increase of PLN 1.5 billion compared to the previous year.

Source: ISBnews