Polish local governments record highest-ever Q1 budget surplus in 2025

Local government units (JST) in Poland reported a record-high budget surplus of PLN 41.3 billion for the first quarter of 2025, according to data from financial reports. This result significantly exceeds the PLN 23.6 billion surplus recorded in the same period last year and contrasts with the full-year deficit of PLN 38.6 billion planned by local authorities.

Revenues for the first three months of the year totalled PLN 140 billion, accounting for 30.5% of the annual revenue plan. Compared to Q1 2024, this marks an increase of 23.6%. Expenditures in the same period reached PLN 98.7 billion, or 19.8% of the annual spending plan, representing a 10.1% rise year-on-year.

The current income exceeded current expenditure by PLN 44.6 billion, substantially outperforming the planned current surplus of PLN 17.6 billion for the full year. This level of surplus, driven by strong revenue collection, is the most favourable result recorded by local governments at this stage of the year in many years. While 404 local government units had forecast current deficits totalling PLN 1.7 billion for 2025, all recorded surpluses at the end of the first quarter.

The debt level of local government units stood at PLN 108.9 billion at the end of March, showing no significant change. Debt as a share of planned total income declined slightly to 23.7%, compared to 23.9% in the same period last year.

The strong budgetary performance is seen as a sign of improved financial health among local governments, largely attributed to the implementation of reforms under the new Act on local government income.