Polish gov't approves 2025 budget with record defense spending

WARSAW, Aug. 29 (Xinhua) -- The Polish government has approved its 2025 budget, allocating nearly PLN 190 billion (49.3 billion U.S. dollars) for defense, a historic high.

The spending represents 4.7 percent of Poland's gross domestic product (GDP) in 2025 with a robust increase in defense spending and key investments in infrastructure.

During a press conference held on Wednesday, Polish Prime Minister Donald Tusk outlined the major aspects of the budget, highlighting the government's commitment to national defense and security.

The budget also includes provisions for a real increase in the minimum wage and the initiation of critical infrastructure projects, particularly in the energy and railway sectors.

In addition, the budget allocates PLN 222 billion (57.6 billion dollars) to healthcare, representing a significant increase from the previous year.

Polish Finance Minister Andrzej Domanski, who also spoke at the press conference, noted that the budget was formulated amid accelerating economic growth. He projected a GDP growth rate of 3.1 percent for 2024 and 3.9 percent for 2025.

He further outlined expectations for increased public and private investments, along with a state budget deficit of PLN 289 billion (74.9 billion dollars) in 2025.