FinMin Bauc admits the economic deficit will exceed 1.8% of GDP
Due to several fiscal problems, the government will not manage to lower the economic deficit to the planned 1.8% of GDP this year, Finance Minister Jaroslaw Bauc said yesterday. Despite that the government does not plan any amendments to the budget law, Bauc added. According to his estimates, the budget deficit, which reached 73.3% of the annual target of PLN 20.5bn (USD 5.16bn) already after March, surpassed 80% after April, and the execution of the budget will not improve by the end of the year. Bauc opposed the proposal to raise the health insurance contribution to 9% from the present 7.75% of income, as it would raise the budget deficit, public debt, and its servicing. He estimated that such an increase would effectively increase budget expenditures by PLN 6-7bn (USD 1.5-1.7bn). Bauc said, however, he still believed that the target of PLN 18bn (USD 4.5bn) from privatisation will be achieved, as many privatisation projects, including the sale of TPSA shares to France Telecom that earlier seemed to be threatened, now may be concluded. This is a change from his opinion expressed in February that the privatisation revenue target was unrealistic. bb, kp
Źródło:IntelliNews Daily
