Ziolkowska: the government will not keep tight fiscal policy next year
A Monetary Policy Council member Wieslawa Ziolkowska warned that general elections and social discontent will discourage the Polish government from pursuing tight fiscal policy next year. The government, which is to send the 2001 budget draft bill to the Sejm before Nov 15, has said it intends to curb the key economic deficit to 1.6% of GDP from 2.3% expected for this year. However, the cabinet, which is losing public support, is unlikely to cut outlays. At the same time, Poland's former Finance Minister Leszek Balcerowicz, one of the possible candidates to replace the outgoing central bank governor in January, said the cabinet should keep a tight grip on spending in the next year's budget. "Increasing the budget deficit would weaken the country's economy and prolong or even prevent the chance of lowering interest rates," Balcerowicz said. "No responsible Monetary Policy Council (RPP) member would agree to lower rates under such circumstances."
Źródło:IntelliNews Daily
