Budget Act 2026 in the Sejm. Domański: The goal is to reduce the fiscal deficit

The first reading of the draft budget act for 2026 began in the Sejm on Thursday. The draft allows for a maximum deficit of PLN 271.7 billion. The government's goal is to reduce the fiscal deficit in the coming years, Andrzej Domański, Minister of Finance and Economy, informed the Sejm.

The project shows that state budget expenditure next year will amount to PLN 918.9 billion, with revenues of PLN 647.2 billion. Thus, the budget deficit is not to exceed PLN 271.7 billion.

In 2026, the budget is to obtain PLN 341.5 billion from VAT, PLN 103.3 billion from excise duty, PLN 80.4 billion from corporate income tax and PLN 32 billion from personal income tax.

Domański: The government's goal is to reduce the fiscal deficit in the coming years

“Our goal is for the deficit to gradually decrease in the coming years, thanks to the favorable economic situation and the actions taken by the government,” Domański said.

The Ministry of Finance assumes the general government deficit in 2025 at 6.9%. GDP and 6.5 percent in 2026

Domański informed the Sejm that within the forecast horizon, the Ministry of Finance expects further inflation stabilization around the NBP inflation target – approx. 3% in 2026.

“Faster than expected disinflation results in lower tax revenues than originally expected. This is naturally positive for citizens, but for the budget it means lower VAT revenues,” Domański pointed out.

Details of the draft budget 2026

In the draft budget, expenditure on national defense was planned at PLN 200 billion, which corresponds to 4.81%. GDP. These funds are to be used to modernize the army and support the security system. PLN 247.8 billion is to be allocated to health care, which is 6.81 percent. GDP, and the government's priority will be investments in medical infrastructure and human resources. Expenditures on roads and railways will amount to PLN 53.9 billion, including PLN 20.1 billion from the state budget. The budget includes additional funds for maritime economy in the amount of PLN 2.4 billion. In turn, expenditure on education and science will increase by PLN 1 billion compared to 2025.

The project earmarked approximately PLN 61.7 billion for the “Family 800+” program, approximately PLN 31.8 billion for the payment of the 13th and 14th pensions, PLN 6 billion for the “Active Parent” program, PLN 1.4 billion for “Dobry Start” and PLN 1.4 billion for financing social security contributions, among others. for people on parental and maternity leave – approx. PLN 4.8 billion. Approximately PLN 22 billion has been planned for the indexation of pension and disability benefits from March 1, 2026. Approximately PLN 7 billion was allocated for the payment of widow's pension, and for increasing the funeral allowance to PLN 7,000. PLN 1.2 billion was included in the draft budget act.

The adopted budget law should be sent to the president for signature within 4 months from the date of submitting its draft to the Sejm. If this does not happen, the president may order the shortening of the term of office of the Sejm within 14 days. The Constitution stipulates that the president signs the budget within 7 days or sends the budget act to the Constitutional Tribunal, which must rule on the matter no later than 2 months after receiving the act. (PAP)

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