Budget cuts to begin with education and healthcare

According to the mid-term strategy published by the Finance Ministry on Wednesday, the state will rationalize its expenditures by limiting exp enditure on universities and healthcare. Economy Minister Jerzy Hausner believes that budget cuts of zł. 7 billion in 2005, zł. 6 billion in 2006 and zł. 5 billion in 2007 will be necessary. "Bearing in mind current growth, even with 5% GDP growth forecast for 2004, the public debt will continue to grow. At some point in 2005 or 2006, it will exceed the legal level of 60% stated in the Constitution," Hausner told journalists. The strategy envisages large revenues from privatization. The only way the government can limit and cut the budget deficit is either by raising taxes, or indeed really cutting expenditures, and budget cuts now increasingly appear the likely option. (Parkiet, p. 5) POLITICS