Finance Ministry to revise its inflation projectionThe finance ministry may revise the 2001 budget proposal, in particular its part relating to inflation, ministry's spokeswoman Aleksandra Gieros said yesterday. The original annual inflation projection for 2001 is 6.1%. The finance minister anticipated next year's inflation to be in the range of 5.9-6.3%, but in July the y/y CPI increased to 11.6% from 10.2% in June, so it would be hard to curb it down to below 10% by the end of the year. "The rise in inflation has caught economists off-guard. The correction of budget provisions will be substantial," said Finance Ministry adviser Stanislaw Gomulka. Due to a higher inflation rate, there will be a need to adjust old-age and disability benefits next year, a move that would additionally widen the next year's deficit. On the other hand, Finance Minister Jaroslaw Bauc said that the budget deficit forecast for 2001 will not be revised upwards. The budget proposal for 2001 forecasts the public finances deficit at 1.7% of GDP, the economic deficit at 1.6% of GDP, and the budget deficit at 1.4% of GDP. It also projects economic growth of 5.7% in 2001 against the planned 5.3% this year, and CA deficit at 7.1% of GDP against 7.7% planned for this year. Privatisation revenues are expected to reach PLN 18bn (USD 4.2bn) compared to over PLN 20bn (USD 4.6bn) this year.