Budget problems ahead

4th September 2009

Economists estimate that the government will have to look hard for ways to keep the 2010 budget deficit from pushing Poland's debt above limits that would trigger mandatory cutbacks in public spending.

The Ministry of Finance is set to release its proposal for next year's budget as soon as Friday. Experts estimate that the deficit in the budget plan for 2010 will rise to PLN 30-45 bln from this year's PLN 27 bln.
Jakub Borowski of Invest Bank told Gazeta Wyborcza that he expects next year's deficit to reach PLN 31 bln and public debt to rise to PLN 74 bln or 53 percent of GDP. Most of the deficit increase will come from inflation adjustments to social spending and rising interest payments ...