Poland’s Prime Minister announced on Thursday that the country intends to increase spending in 2024, prioritizing defense, healthcare, social benefits, and public sector salaries. This budget decision comes as Poland gears up for elections scheduled for October 15.
The ruling nationalist Law and Justice (PiS) party, known for its generous social benefit programs, has placed a strong emphasis on security this year, particularly given concerns about growing instability on the eastern border with Belarus.
However, some economists caution that the pre-election commitment to significant spending could hinder Poland’s battle against inflation, which stood at 10.8% in July, and elevate the deficit to precarious levels.
In 2024, the government plans to allocate over 4% of its Gross Domestic Product (GDP) to defense, as stated by Prime Minister Morawiecki. Additionally, it will earmark 137 billion zlotys ($33.23 billion) for salary increases for public-sector workers and initiatives such as the 800+ child benefit scheme, along with supplementary support for pensioners. An additional 190 billion zlotys will be allocated to healthcare.
The expected budget deficit for 2024 is approximately 4.5% of GDP, contrasting with the 3.4% projection made in April when Poland submitted its convergence plan to the European Union.
