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[BUSINESS] · Poland · 20 sources

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Poland adopts 2027 budget draft with defense and tax reforms

The Polish Council of Ministers has adopted the 2027 budget draft, projecting revenues of 695 billion PLN and expenditures of 977.6 billion PLN, resulting in a deficit of 282.6 billion PLN. Key priorities include national security, healthcare, and strategic investments.

Defense spending is planned at 198.1 billion PLN, approximately 4.51% of GDP. Healthcare funding is set to increase by 26.3 billion PLN, reaching 274.1 billion PLN. The budget also includes a 47.5 billion PLN contribution to the EU.

Tax reforms are central to the proposal. The Corporate Income Tax (CIT) is slated to rise from 19% to 22% for companies with annual revenues exceeding 50 million euros. Personal Income Tax (PIT) changes include a new 24% rate for income between 130,000 and 150,000 PLN. Additionally, the budget allocates 46.2 billion PLN to science and higher education.

A significant political conflict has emerged regarding the Constitutional Tribunal. The 2027 budget contains zero funds for the institution. Minister of Finance Andrzej Domański stated that the Tribunal's financial plan was not effectively delivered to his ministry, while Minister of Justice Waldemar Żurek attributed the situation to legal irregularities in the Tribunal's internal proceedings.

Entities

Andrzej Domański · Constitutional Tribunal · Council of Ministers · Donald Tusk · Hanna Majszczyk · Ministry of Finance · Poland · Waldemar Żurek

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