According to preliminary data published today by Statistics Poland, in 2025 the general government deficit reached 7.2% of GDP, while public debt rose to 59.7% of GDP. Although the figures are preliminary, their scale indicates a persistently high imbalance in public finances and a continuing upward trend in public debt.
Preliminary data on the deficit and debt-to-GDP ratio of the general government sector in 2025
A deficit at the level of 7.2% of GDP means that the gap between government expenditure and revenue was financed through increased borrowing. In practice, this implies that current spending is being covered with borrowed funds that will need to be repaid in the future, together with the cost of servicing the debt.
Rising public debt directly translates into higher debt servicing costs, which limits the fiscal space available for key public services such as healthcare, education, and infrastructure. At the same time, it reduces the state’s ability to respond to future economic crises.
The Institute of Public Finance has been monitoring the risks associated with growing public debt for years. The fact that debt is approaching 60% of GDP – widely regarded as an important threshold for fiscal stability combined with a high deficit, points to a structural problem, rather than a one-off occurrence.
A detailed analysis of this issue is presented in the cyclical report “Threats of Excessive Public Debt”, prepared by the Institute of Public Finance and the Institute for Responsible Finance. The publication provides a comprehensive examination of the scale and sources of public debt, its economic consequences, and long-term risks to fiscal stability. It also contributes to the broader public debate on responsible fiscal policy in Poland.
The next, sixth edition of the report will be presented during the European Financial Congress in June 2026.
