Domestic and European Union Funds in Poland’s Agricultural Budget in 2004–2025: Interrelationships and Interdependencies

This article analyses budgetary expenditures on agriculture and rural development in Poland in 2004–2025, i.e., after Poland’s accession to the European Union (EU). The study examines the size, real dynamics, and structure of total agricultural budget expenditures, including both national budgetary funds and EU funds allocated through the instruments of the Common Agricultural Policy (CAP). The analysis assesses the importance of EU budget funds for the level and structure of public expenditures on agriculture and rural development in Poland and attempts to determine the relationship between national and EU funds. The study employed time series analysis, structural analysis, and an analysis of the interdependence of variables (i.e., correlation and multiple regression). It was found that during the 22 years of EU membership, budgetary expenditures on agriculture, agricultural markets, and rural development in Poland were strongly determined by the volume of European funds, which accounted for the sharp increase in Poland’s agricultural budget compared with the pre-accession period. Compared with 2003 levels, expenditure rose by an average of 162% in nominal terms and 129% in real terms. EU funds also acted as a stabilising factor for the size of this budget throughout the analysed period. The proportion of European funds in Poland’s agricultural budget (PAB) rose sharply in the early years of Poland’s EU membership (2004–2011), increasing from 20.1% to 48.7%. However, it remained relatively stable in subsequent years, averaging 47.8%. Nevertheless, the appreciation of the Polish zloty against the euro caused the real value of these expenditures to decline, a trend that became apparent from 2017 onwards. This resulted in the need to increase expenditures from the national budget and led to national funds assuming a greater share of the financial burden of supporting agriculture. Between 2017 and 2025, the share of EU funds in the PAB fell from 43% to 33.1% (averaging 40.3%). The structure of expenditures within the CAP evolved over time as a result of changes in CAP priorities, although farmers’ income support as well as assistance for the modernization and improvement of the competitiveness of Polish agriculture remained key objectives.