Poland’s 2026 Draft Budget Sets Record Spending, Debt Levels to Rise

Poland’s government has approved a draft state budget for 2026 along with new legislation to support its implementation and a medium-term borrowing plan. The package points to record public spending on defence, health care and social support, while at the same time projecting higher levels of debt.

The budget sets out total revenues of about PLN 647 billion and planned spending of PLN 919 billion, leaving a shortfall of PLN 272 billion. Under the official national measure, public debt is expected to climb to just under 54 percent of GDP in 2026, while using European Union definitions the figure could exceed 66 percent. The forecasts assume Poland’s economy will expand by around 3.5 percent next year, with inflation averaging 3 percent and unemployment near 5 percent by December.

The largest single increase is in military funding, which will reach more than PLN 200 billion, roughly 4.8 percent of national output. Health care will also receive a record allocation of PLN 248 billion, including expanded financing for fertility treatment and new crisis support lines. Social policies continue to take up a major share of the budget: the Family 800+ benefit is expected to cost nearly PLN 62 billion, while two extra annual pension payments will total about PLN 32 billion. Additional commitments include pension indexation of roughly PLN 22 billion, a higher funeral benefit, new housing subsidies, and support for maritime training and research.

On the revenue side, the government expects stronger tax receipts, particularly from consumption and corporate taxes. Value-added tax is forecast at PLN 342 billion, while income from excise duties is projected at PLN 103 billion, partly due to higher levies on alcohol, tobacco and electronic cigarettes. A new electronic invoicing system is scheduled to roll out in 2026, which authorities say will help reduce tax evasion.

The accompanying legislation includes modest salary increases for teachers at the start of their careers and managers of state companies, as well as provisions allowing greater flexibility in responding to emergencies such as natural disasters or security threats.

The debt strategy for 2026–2029 aims to ensure borrowing needs are met while keeping financing costs in check. It also pledges to maintain the credibility of the government bond market.

The draft budget highlights the government’s priority of maintaining high levels of social and defence spending, but it also reflects the cost of those choices in terms of growing debt. For households, the measures mean continued support programmes and higher pensions, while for the economy as a whole they signal more pressure on public finances in the years ahead.

Poland’s telecommunications sector recorded continued growth in 2024, according to data from the Statistical Office in Szczecin, based on figures from the Office of Electronic Communications (UKE). Total revenues from telecommunications activities rose to PLN 44.4 billion, up from PLN 43.1 billion in 2023, despite declines in some traditional services.

The structure of revenues highlights the ongoing transformation of the market. Mobile telephony remained the dominant source, generating PLN 16.5 billion, compared with PLN 15.3 billion in 2023. Internet access also strengthened, reaching PLN 10.8 billion, supported in particular by mobile technologies. Bundled services, which combine mobile, internet, television and sometimes VoIP, accounted for PLN 14 billion, reflecting the growing preference of consumers for package offers. By contrast, traditional fixed-line telephony continued to contract, with revenues falling from PLN 924.5 million in 2023 to PLN 827.3 million in 2024. VoIP telephony also saw a sharp drop in users, from 2.8 million to 2 million, with call volumes declining from 2.7 to 1.8 billion minutes.

Mobile subscriptions continued to form the backbone of Poland’s telecoms market. By 2024, there were more than 53 million active mobile lines, up from 52.4 million a year earlier. Post-paid contracts dominated with 39.7 million users, while prepaid services stagnated. Outgoing mobile calls reached 105 billion minutes, similar to the previous year. Data transmission volumes grew significantly, with combined mobile and fixed traffic reaching 11,243 petabytes, compared with 9,486 petabytes in 2023. SMS messaging stabilized at around 38.6 billion messages, while MMS use rose slightly to 2.4 billion.

Internet access is now close to universal. Mobile technology dominates with 80.5 million users, of which 59 million are consumers and 21.5 million are businesses. Fixed-line wired connections reached 9.1 million users, while wireless fixed access served 565,000. Fibre optic networks strengthened their position, representing 56 percent of fixed-line connections, while older xDSL connections fell to 27 percent.

Pay-TV remained an important part of the market. In 2024, cable television counted 4.6 million subscribers, up from 4 million in the previous year. Satellite television remained strong, although its share continued to be eroded by IPTV and digital cable services. Bundled services also expanded, reaching 14.1 million subscribers compared with 13.7 million in 2023. The most common package included mobile telephony and mobile internet, followed closely by television combined with fixed-line internet.

The data suggest three important developments for readers. Traditional fixed-line services are in steady decline, both in revenues and subscribers, confirming their diminishing role in the digital age. At the same time, data consumption is growing at an unprecedented pace, reshaping investment priorities in fibre optics and 5G. Finally, bundled services are becoming the norm, as consumers increasingly opt for integrated solutions rather than individual services.

The outlook for the sector points to further consolidation around mobile, broadband and bundled packages. Fixed-line telephony is close to obsolescence, VoIP is losing relevance, and competition is shifting toward network capacity, speed and value-added services. For households and businesses, this means a deeper dependence on digital infrastructure, while policymakers face the challenge of ensuring broad and resilient access to support continued growth.

Source: GUS

Poland ended 2024 with 97 registered political groupings, of which 70 were active, according to new data published by Statistics Poland. Together, they counted just over 209,000 members and reported combined revenues of PLN 301.2 million.

Seven new parties were registered during the year, while 16 were removed from the official register. The total number of registered parties at the close of 2024 was two fewer than in 2022, but still 24 more than in 2014. Of the active groupings, 21 were represented in parliament or government, 12 held seats only at the local level, and 37 had no presence in public authorities. Nearly two-thirds of all parties were based in the Mazowieckie region, with 46 headquartered in Warsaw.

Membership in political parties rose 2.6 percent compared with 2022, though the total remained almost 30 percent lower than a decade earlier. The overwhelming majority of members—more than 90 percent—belonged to parties with parliamentary representation, even though such groups made up only about a third of all active organizations. Men accounted for two-thirds of the membership, though their share has been gradually declining.

Organizationally, more than half of the parties maintained field structures, but the number of local units has fallen since 2022. Parties most often reported activities such as public gatherings, press conferences, debates, and media appearances. Forty-eight organized civic events, 46 engaged in public debates and educational campaigns, and 43 reported interventionist actions aimed at helping social groups or individuals. Publishing and legislative work were less common, and only five parties undertook research activities.

Cooperation with other organizations was widespread: 47 parties said they worked with external groups, most often with other political parties (40) or associations and foundations (32). Far fewer reported links with churches or employers’ organizations. Fourteen parties declared youth associations, although their total membership fell to 4,200, nearly 3,000 fewer than in 2022.

Volunteerism continued to play an important role. Nearly 20,000 people provided unpaid work for political parties in 2024, up 18 percent from two years earlier but far below levels seen a decade ago. Most of these volunteers were also party members, and the bulk of their efforts supported parliamentary parties. Paid employment remained limited, with only 14 parties hiring staff. Altogether, 192 people worked on employment contracts and 229 under civil law agreements, both fewer than in 2022.

Party revenues surged to PLN 301.2 million in 2024, up sharply from 2022, mainly due to post-election subsidies and higher individual contributions. Public funds accounted for nearly 56 percent of the total, with PLN 167.9 million transferred from the state budget. Parliamentary parties dominated financially, taking in 99.7 percent of all revenues. Half of the parties reporting income raised no more than PLN 13,000, while six large organizations each exceeded PLN 1 million and together accounted for nearly 99 percent of all revenues.

The biennial survey underlines both the concentration of resources among Poland’s leading parties and the continuing decline in grassroots membership compared to a decade ago. While more parties are on the register than in 2014, participation and revenues remain heavily skewed toward parliamentary players.