WARSAW — Poland’s 2025 draft budget will allocate 3.2 billion zlotys ($835.88 million) as a reserve to combat natural disasters, following the worst floods in two decades that left towns in southwestern Poland submerged. Finance Minister Andrzej Domanski announced the measure on Saturday, as the government seeks to manage the aftermath of the floods that caused widespread damage.
In addition to the reserve, Poland plans to release 23 billion zlotys from the national budget and European Union funds to address the destruction. The government is also transferring 738 million zlotys from a general subsidy reserve to local authorities in the flood-affected regions.
While no decisions have been made about adjusting the 2024 budget, the minister acknowledged that the floods increase the likelihood of such changes. The draft 2025 budget is set to be adopted later today during a closed government session.
Poland’s financial outlook is also challenged by a projected rise in the general government deficit to 5.5% of GDP, driven by increased defense spending and the revision of budgetary practices from the previous administration.