Economists Panel: State Spending Needs Thorough Review

The state of Poland's public finances is widely identified as a critical weakness for the national economy. The sector's deficit has seen a sharp increase in recent years, climbing from 1.7% of GDP in 2021 to a projected 7.3% in 2025. This deficit level is the highest in three decades, surpassing even the 2020 pandemic year's figure and nearing the 7.4% recorded in 2010 following the global financial crisis.

The primary driver behind this escalating deficit is the rapid growth in public spending. For two decades after the turn of the century, expenditures remained between 41% and 46% of GDP. While spending briefly spiked to nearly 48% in the pandemic year of 2020, it returned to around 43.5% in the subsequent two years. However, a significant upward trend began in 2023, pushing public spending to 50.9% of GDP by 2025.

This surge in government expenditure is particularly pronounced when compared to other European Union member states. Since 2019, Poland's public spending has increased by 9.5% of GDP, marking the most substantial rise within the EU. Economists are calling for a thorough review of state expenditures to address this growing fiscal challenge.