In the wake of devastating floods that have left towns in southwestern Poland submerged, the Polish government has announced a substantial allocation of funds for disaster relief and recovery.
The 2025 draft budget, unveiled on Saturday, will include a 3.2 billion zloty reserve specifically for dealing with natural disasters. This commitment comes on top of an earlier pledge of 23 billion zlotys – a combination of government funds and European Union support – to address the immediate aftermath of the floods, which have been described as the worst in at least two decades.
Finance Minister Andrzej Domanski, speaking at a government meeting, emphasized the seriousness of the situation, stating that the disaster reserve could be further increased. He also announced a direct transfer of 738 million zlotys from the general subsidy reserve to local authorities impacted by the floods.
While the government hasn’t yet decided on potential changes to the 2024 budget, the floods have made such adjustments more likely. The draft 2025 budget, to be formally adopted later on Saturday, anticipates a general government deficit reaching 5.5% of GDP. This projected increase is attributed to rising defense expenditures and the reversal of certain cost-saving practices implemented by the previous administration.
The significant financial commitments needed to address the flood crisis come at a time when the Polish government is already facing scrutiny from the European Union regarding its budget discipline. The devastating impact of the floods further complicates the financial landscape, highlighting the potential for budgetary strain in the coming years.
