Bauc insists there will be no budget amendment despite 89.7% of deficit used

A mere zl.2.1 billion is left out of the zl.20 billion budget deficit planned for this year, after 89.7% of the planned shortfall for the whole of 2001 was used in the first four months. This was 6% more then finance minister Jaroslaw Bauc had estimated just three days ago. While most analysts believe that it is now only a matter of time before the budget will be amended, Bauc insists that he still expects there will be no changes to the budget bill. He is quoted as saying that the higher than expected growth in the budget deficit can be explained by the increased subsidies for local government and lower revenues from VAT, and that he is looking forward to a significant recovery in June, when the budget will be boosted by central bank profits and UMTS revenues. On the matter of interest rates, Bauc called for a cut, urging the Monetary Policy Council (RPP) to ignore the fact that inflation rose in April for the first time in nine months, to reach year-on-year 6.6% from 6.2% in March. He argued that this seasonal upturn will disappear in June, July and August, as food prices fall. (Rzeczpospolita, p.B1, Parkiet, pp.1,2, Reuters) M.K.