Poland Drafts 2027 Budget with 977.6 Billion PLN in Spending and 282.6 Billion PLN Deficit

Government draft and spending targets

The Polish Council of Ministers convened after 9:20 on Friday, 28 August 2026, in Warsaw to deliberate on the draft state budget for 2027. Under the framework prepared by Finance Minister Andrzej Domański, total state spending is planned at 977.6 billion PLN against projected budget revenues of 695.0 billion PLN. This leaves an anticipated state budget deficit of 282.6 billion PLN for the year, an increase of approximately 11 billion PLN compared to the 271.74 billion PLN deficit budgeted for 2026. The 2026 budget had set expenditures at 918.94 billion PLN and revenues at 647.2 billion PLN. The final government proposal must be submitted to the Sejm by 30 September 2026 following review by the Social Dialogue Council.

Allocations for defense, healthcare and energy

Prime Minister Donald Tusk identified state security, healthcare, and infrastructure as the core pillars of the 2027 fiscal plan. Defense allocations remain near 5% of gross domestic product (GDP), roughly double the average level among NATO members. Total healthcare spending is projected to grow, with proposals citing an increase of up to 26 billion PLN over the 247.8 billion PLN allocated in 2026, alongside 17 billion PLN in additional direct funding from the state budget. The draft also secures financing for nuclear energy projects, power grid upgrades, and transport initiatives including the Port Polska project and high-speed rail development.

Tusk addressed the external pressures shaping the government's fiscal decisions during the opening session.

We have a war beyond our border, other conflicts, such as the Iranian one, which also directly affect our financial condition.

Tax restructuring and fiscal execution

The 2027 budget incorporates planned modifications to personal and corporate income taxes. Under the draft plan, the personal income tax (PIT) structure transitions from two to three brackets, raising the first threshold from 120,000 PLN to 130,000 PLN at a 12% rate, introducing an intermediate 24% rate on earnings between 130,000 PLN and 150,000 PLN, and applying a 32% rate above 150,000 PLN. The measure is expected to affect 3.5 million taxpayers. To offset fiscal pressures, corporate income tax (CIT) for companies generating more than 50 million euros (over 200 million PLN) will increase from 19% to 22%. By the end of July 2026, the state deficit had accumulated to 141.1 billion PLN, representing 51.9% of the full-year target.

Macroeconomic projections and wage rules

Macroeconomic forecasts adopted for the 2027 budgetary assumptions project annual GDP growth of 3.1%, average annual inflation of 2.5%, and a year-end registered unemployment rate of 5.6%. The government plans a 3% wage increase for public sector employees and forecasts overall economy-wide wage growth of 5.6%. Pension and disability benefit indexation is slated for a minimum rise of 3.48%. The statutory minimum wage will rise to 4,950 PLN per month starting in 2027, with the minimum hourly rate climbing to 32.30 PLN. Following submission to parliament by 30 September, the Polish Constitution mandates that the budget reach the president within four months, with a seven-day window for presidential signature.