“Budget surplus for the first quarter of 2025. is historically the highest budget result of the JST after the first quarter (For comparison, after the first quarter of 2024, the budget surplus amounted to PLN 23.6 billion) ” – the Ministry of Finance was indicated.
“For the first quarter of 2025, local government units generated total income in the total amount of PLN 140 billion (i.e. 30.5 percent of the annual plan). Total income for the first quarter of 2025. They were 23.6 percent higher compared to the implementation after the first quarter of 2024.” – added.
According to data from the Ministry of Finance, the total amount of expenditure of local government units amounted to PLN 98.7 billion, which accounted for 19.8 percent. amounts of planned expenses. The amount of expenses realized total after the first quarter was in turn 10.1 percent higher compared to the same period of the previous year.
According to data for the first quarter of 2025, the current income made was higher than the current expenses by PLN 44.6 billion, with a current current surplus of PLN 17.6 billion.
“Such a good current result achieved by high surplus of current income over current expenses after the first quarter in many years did not note. Despite the fact that 404 local governments are planning in their budgets per year on the annual basis for the current deficit for a total amount of PLN 1.7 billion, all units were made after the first quarter of 2025,” a statement of the Ministry of Finance.
The debt in local government units after the first quarter of 2025 amounted to PLN 108.9 billion and remained at a stable level – the Ministry of Finance said.
“Local governments in relation to planned total income amounted to 23.7 percent for the first quarter of 2025 (for comparison, an analogous relationship after the first quarter of 2024 was 23.9 percent)” – wrote in a communiqué.
“The above results of the implementation of JST budgets after the first quarter of 2025 are a good symptom of the improvement of the financial situation of the local government resulting primarily with the effects of the reform introduced by the new Act on the income of local government units” – added.
Reform of local governments
The new system assumes that tax revenues will be the main source of income for local government units, while subsidies from the state budget will be complementary. From January 2025, income is calculated as a percentage of taxpayers' income from a given JST, which means a departure from the current rule based on tax due.
Thanks to this, local governments do not have to be afraid of the impact of tax changes, such as the introduction of concessions, exemptions or increasing tax -free amount. Local governments have gained not only the majority of PIT and CIT, but also participate in tax collected in the form of a lump sum on recorded revenues. The Ministry of Finance assured that each local government unit would gain at least 4 percent on a new system. But no more than 10 percent compared to the current income system.
According to the new regulations, the following percentage of participation in PIT taxpayers residing in a given local government unit:
- municipalities – 7.0 percent
- cities with poviat rights – 8.6 percent;
- poviat – 2.0 percent;
- voivodships – 0.35 percent
In relation to CIT, these indicators are:
- municipalities – 1.6 percent;
- Cities with poviat rights – 2.2 percent;
- poviat – 1.7 percent;
- voivodships – 2.3 percent
