Poland’s cabinet has adopted the final draft of the 2027 budget bill, which includes tax cuts for the middle classes and an increase in contributions for the highest earners. The budget, which needs the approval of parliament and the opposition-aligned president, foresees 3% GDP growth for Poland next year and pegs the deficit at a little over 280 billion złoty (€64 billion). The 3% growth assumed in the document reflects an increasingly balanced economy, Finance Minister Andrzej Domański argued. “This growth is becoming increasingly balanced, as it no longer relies solely on strong consumer spending and we are seeing a clear acceleration in investment,” Domański told a Tuesday press conference. Tax changes? Proposed income tax changes were proposed in August by Prime Minister Donald Tusk. The measures would introduce a new 24% rate for people earning between 130,000 and 150,000 złoty a year (€27,700 to €34,300), which could lead to tax cuts for around 3.5 million people. Corporate income tax paid by those whose income exceeded €50 million would increase from 19% to 22% under the plans. The budget foresees total government income of 696.4 billion złoty (€159 billion) and expenditure at 977.6 billion złoty (€223.5 billion) for the financial year, leaving a shortfall of 281.2 billion złoty (€64.3 billion), the finance minister said. Income from corporate income tax is expected to total 94.6 billion (€11.34 billion) with a further 33.4 billion złoty (€7.64 billion) coming from personal income tax and 363.7 billion złoty (€83.17 billion) from VAT, the minister added. Public debt Also on Tuesday, the government adopted its public debt strategy for the years 2027–2030, which predicts that public debt will remain below the constitutional threshold of 60% of GDP through 2030. Domański said public debt will stand at 55.09% of GDP in 2027, rising to 58.6% in 2028 and peaking at 59.2% in 2029.