“This year's borrowing needs specified in the budget act for this year have already been fully financed” – Deputy Minister of Finance Jurand Drop announced on Friday.
“We estimate that the balance of funds in budget accounts will be approx. PLN 148 billion” – he added.
Borrowing needs. What about bonds?
Jurand Drop also announced that two sale auctions and one bond swap auction are planned in November. In addition, the Ministry of Finance is planning one auction for the sale of treasury bills.
“In September, debt in treasury bonds on the domestic market increased by PLN 26.8 billion. The involvement of domestic banks increased by PLN 22.6 billion, and that of domestic non-bank investors by PLN 8.6 billion. Debt to foreign investors decreased by PLN 4.4 billion,” said the Deputy Minister of Finance.
See also: The Ministry of Finance will borrow less in 2026 than it declares. Lending needs under the microscope
A country's borrowing needs are the amount of money that the government must raise from outside (by issuing bonds or borrowing) to cover its expenses when revenues from taxes and other sources are not sufficient. They include both the financing of the budget deficit, i.e. the missing money in the current budget, and the repayment of previous liabilities (e.g. bonds already issued).
When the deputy minister says that before the end of the year the state “financed the entire year's borrowing needs”, it means that by that point the government had collected a sufficient amount through loans or bond issuance to cover the entire deficit planned for the entire year and possibly repay some of the previously incurred liabilities.
The state budget for 2026 has a big hole to fill
In other words, for the rest of the year, the state theoretically does not have to take out additional loans because it has secured all financial needs. In practice, however, it is known that the budget for 2026 is very demanding and anticipatory actions are needed.
The government adopted the draft budget law at its meeting at the end of September. What comes to the fore here is the gigantic deficit. Budget expenditure next year is to be over PLN 270 billion higher than planned revenues (PLN 918 billion vs. PLN 647 billion, respectively). It's a smaller hole than this year, but still very high.
