Belka begins reign with spending freeze and promise of budget revision

Prime Minister Leszek Miller on Friday introduced Marek Belka as his Finance Minister, saying: "The responsibility for economic development rests on Mr. Belka's shoulders. I am delighted that such an important mission is in such capable hands." On Saturday, at the first official meeting of the new Cabine t, ministers accepted Belka's plan to freeze zl.8.5 billion of spending, a m ove forced by poor revenues brought about by low economic growth. The new Fi nance Minister also said he would seek to revise this year's budget once aga in, in order to start next year with a clean slate, but that the revision wo uld likely be made toward the end of the year. On the day of Belka's appoint ment, the Finance Ministry yet again revised down its economic growth foreca st for this year. On Thursday, departing Minister Halina Wasilewska-Trenkner said GDP growth would reach 1.7%-2% this year, but according to unofficial s ources quoted by Gazeta Wyborcza, the Ministry now expects growth of just 1. 5%. The same sources project inflation at 5.6% this year and 4.7% in 2002, w ith GDP growth of 2%-2.5% next year. (Gazeta Wyborcza, Oct. 20-21, pp. 18-19 ; Reuters) T.J.