2002 budget deficit might be lower than PLN 40bn
According to the Finance Ministry, this year's budget deficit might reach PLN 37.5-38.5bn, or less than the PLN 40bn set in the budget law. According to unofficial information of the daily newspaper Rzeczpospolita, a lower budget gap would result from higher than initially expected VAT and excise tax revenues. At the same time, the debt servicing costs will be lower than planned initially, thanks to a strong zloty. Rzeczpospolita also reported that by the end of August, the Finance Ministry, which is now working on the next year's budget, would say whether the 2003 expenditures would be lower than those according the the "inflation plus 1pp" principle set by former Minister Marek Belka. Earlier this month, Finance Minister Grzegorz Kolodko said that he would like to lower the expenditure growth to 3.7%, down from the 4% planned. Unofficial sources quoted by the daily said that lower spending would be possible thanks to a decreased subsidy to the Social Insurance Fund (FUS) and the KRUS agricultural insurance fund. Some analysts said, however, that implementation of the so-called Kolodko's plan will result in increasing the next year's revenues. According to experts at the bank Pekao, the deficit might then be lowered to PLN 38.9-39.5bn, against PLN 43bn accepted by the government. kp,bb
Źródło:Polski IntelliNews
