Poland’s defence expenditure will exceed PLN 113 billion (USD 27 billion / EUR 25 billion), equivalent to 3% of next year’s planned GDP, according to the Ministry of Finance’s 2024 draft budget. Compared to this year (PLN 97.4 billion), this is an increase of 16.3%.
In addition, another PLN 4.8 billion would be allocated to the procurement of the Abrams main battle tanks.
Almost half of the money, or PLN 49.3 billion, would be allocated to capital expenses, including procurement of the new equipment and armament, and construction investments, equivalent to 43.5% of the entire defense budget.
It is the second year in a row when a 20% share of capital expenditure is exceeded in defence spending, as required by the Act on Homeland Defence (41.2% for 2023). According to the Act on Homeland Defence, the following elements are a part of the defence expenditure plan:
— PLN 112.7billion in the “National defence” part of the budget;
— PLN 615.4 million in Section 752, National defence in other sections of the state budget Ad.
That money will be allocated to research and specific purpose projects in defence, the Non-military Defence Preparation Programme, activities of the common prosecutor’s office for military cases, ESA contributions, and tasks tied to military qualification processes.
The funds in the “National Defence” section of the budget would break down as follows:
— PLN 49.1 billion for capital expenditure (+22.5% over 2023);
— PLN 27.7 billion for military and civilian personnel expenditures: payroll, cash bonuses and related expenses (+20.3% over 2023)
— PLN 19.8 billion for overhaul, healthcare, telecommunications, and other services (+1.6% over 2023)
— PLN 11.1 billion for retirement pay and benefits (+17% over 2023)
— PLN 2 billion for ongoing expenditure (+19.5% over 2023)
— PLN 4.5 billion are earmarked to cover personal liability (+19.6% over 2023)
— PLN 4.4 billion are earmarked for tasks tied to national defence (+9.7% over 2023)
Furthermore, over and beyond this budgetary total of PLN 113.3 billion, a special-purpose reserve of PLN 4.8 billion was earmarked to implement Council of Ministers’ resolution for a multi-year “Equipping the Armed Forces of the Republic of Poland with main battle tanks” program. These assets would become a part of the Armed Forces Support Fund.