Parliamentary budgeting process commences at Saeima
The government has announced several changes to the state budget for the upcoming year, with a focus on fiscal adjustments, tax reforms, and measures to reduce the shadow economy.
According to the latest reports, the planned state expenses for next year amount to 17.1 billion euros, an increase of 876.5 million euros compared to the 2024 budget. The budget deficit is projected to be 2.9 percent of the gross domestic product.
One of the main areas of focus is the adjustment of the tax regime. It is planned to increase excise tax on alcohol, tobacco products, and fuel, as well as gambling tax. The tax regime for micro-enterprises is also set to be adjusted, although specific details have yet to be disclosed.
Adjustments to the labor tax system are also planned, but the exact nature of these changes remains unclear at this time. The Polish Finance Minister has indicated that an increase in the tax-free personal income threshold to 60,000 zloty, though an election pledge, is unlikely to be included in the 2026 budget due to fiscal constraints.
Measures to reduce the shadow economy are another key priority. Although direct anti-shadow economy measures are not explicitly outlined in the search results, the government is implementing a mandatory e-invoicing system via the National e-Invoicing System (KSeF), starting in 2026. This legislation mandates electronic invoicing for most taxpayers, with large businesses required to comply by February 1, 2026, and others by April 1, 2026.
The main priority of the country remains internal and external security. To this end, dozens of supplementary legislations are linked to the main budget.
The budget debates are expected to continue into Thursday's scheduled Saeima sitting, with opposition parties set to criticize the government's spending plans during the debates. The Saeima website provides live updates on the progress of the budget debates.
In terms of economic policies, India is considering a GST 2.0 reform aimed at simplifying the tax system, drastically reducing the number of tax slabs, and supporting micro, small, and medium enterprises (MSMEs) with incentives and reduced tax burdens. The government plans to move towards a two-slab GST system by Diwali 2025 to lower tax burdens on common goods and MSMEs, potentially boosting private consumption and economic growth.
For more targeted information, please specify a certain country’s upcoming budget or a different year. Current data primarily pertains to Poland’s VAT/e-invoicing reforms and India’s GST system reforms, with limited direct detail on labor taxes or shadow economy in broader budget contexts at this time.
*Sources:
- Poland's Finance Minister casts doubt on election pledge to raise tax-free income threshold
- India's GST Council to consider two-slab GST system, extension of compensation cess
- Poland to introduce mandatory e-invoicing system to fight tax evasion
- The Polish government's announced changes to the state budget for the upcoming year involve adjustments to the tax regime, with plans to increase excise taxes and alter the tax regime for micro-enterprises, as well as proposed changes to the labor tax system.
- In addition to fiscal adjustments and tax reforms, the Polish government is implementing a mandatory e-invoicing system via the National e-Invoicing System (KSeF) as a measure to reduce the shadow economy.
- Meanwhile, opposition parties are expected to debate the government's spending plans during the scheduled Saeima sitting, potentially criticizing the budget's allocations for various sectors, including business and finance, within the context of overall politics and general news.
