Alarm bells begin to ring again as public debt exceeds 55% of GDP

Economists estimate that the public debt has exceeded the level of 55% in relation to GDP and they believe it will keep on growing, as politicians do not have a clear plan on how to limit it. At the end of 2003 the figure stood at 51.6% but, "In Q1 the debt of the state alone increased by over zł.28 billion, which is roughly 3.4%. Assuming that other factors which constitute the public debt remained unchanged, then the overall public debt reached the level of 55%," said Piotr Bielski, an economist with BZ WBK. The Finance Ministry said that if this level is not reduced by the end of the year, then this would mean that the budget would have to be balanced in 2006. This would lead to, "Malfunctions in the operations of state administration, or even delays in paying pensions and salaries in the state sector," said Maciej Krzak from Bank Handlowy. (Parkiet, p. 1) M.M.