BRE bank predicts economic and budget deficits above target in guidelines

The government is assuming an economic deficit of 4.9% of GDP and a budget deficit of 5.9% of GDP or zl. 46.3 billion in its rough outlines for next year's budget. Such data, revealed by BRE Bank and quoted by Gazeta Wyborcza, have been confirmed by an anonymous member of the government. The figures exceed previous declarations as do this year's economic and budget deficits - 4.8% and 5.3% of GDP respectively. However, another source said that the guidelines cannot be seen as final and that "Minister Belka will come to a meeting on Friday with a lower budget deficit". Such statements are reliable since senior advisor to the minister, Stanislaw Gomulka, said earlier this week that a deficit much larger than this year's gap may not be financeable. Other assumptions include average annual inflation of 3%, GDP growth of 3.1%, unemployment of 20% and a current account deficit of 5.1% of GDP. (Gazeta Wyborcza, p. 19, Reuters) M.K.