Belka unveils budget plans for saving the country from economic crisis

Marek Belka, the man likely to be Poland's next Finance Minister, has announced his basic budget assumptions. He described the present finance ministry's aim of a zl.40 billion budget deficit as a frontier that under no circumstances could be passed. Belka said, "The budget situation is very difficult, but our plan will be able to save the country from crisis and return it to a quick growth path. Success would be 5% growth in two years." Belka promised that under a Democratic Left Alliance (SLD) government, the deficit would be financed differently, with zl.30 billion coming from debt markets and the remaining zl.10 billion from privatization. According to Rzeczpospolita, Belka intends to reduce next year's deficit mainly through spending rationalization and an increase in revenue. Belka promised, however, that any cuts would not affect the poorest members of society or harm companies financially, and that there would definitely not be a pensions freeze. As for the means of increasing budget revenue, the most likely option is the introduction of a capital gains tax. "We're speaking here about taxation on the income from savings, bonds and stock exchange transactions," he said. Referring to the talks on European Union (EU) entry, he went on, "Poland has agreed in its negotiation position that it will introduce tax on capital profit from 2003. Why not bring the date forward by one year?" (Rzeczpospolita, p. B1; Reuters) P.J.