Govt plans to spend $750 mln to boost ammunition production

Since Moscow launched its full-scale invasion of Ukraine in 2022, Poland has become NATO's biggest spender on defence in relation to the size of its economy, with the 2025 budget allocating 4.7% of gross domestic product for the purpose.

"The draft act aims to create opportunities to provide financing for activities aimed at increasing the capacity for ammunition production," the bill says, with a particular need to expand large-caliber production to bolster the potential of the Polish Armed Forces.

"The Capital Investment Fund will receive approximately 3 billion zlotys for the purpose specified by the law. Two billion zlotys will come from the Ministry of National Defense’s budget," the document states.

The funds will be transferred to the Ministry of State Assets under the provisions of the Homeland Defense Act. "Subsequently, the Ministry of State Assets (MAP) will deposit these funds into the Capital Investment Fund."

It further specifies that funds allocated to the fund will be used by the State Treasury, represented by MAP, to acquire or take shares or stock.

"The remaining funds will be transferred in the form of treasury securities currently held by the Governmental Agency for Strategic Reserves. These are treasury securities received free of charge by the Governmental Agency for Strategic Reserves on December 29, 2023," the bill states.

The government aims to adopt the bill during the fourth quarter, according to its website.

Some NATO officials have said the Kremlin might be ready militarily to attack NATO countries in five to eight years' time, once it has rebuilt its forces after the war in Ukraine. Moscow has regularly dismissed Western suggestions that it might consider an attack on NATO.

In September Marcin Idzik, a board member of the state-owned Polish Armaments Group (PGZ), told Reuters that Warsaw aimed to ramp up its production of 155 mm artillery rounds.