Budget deficit for next year predicted to reach zł. 45.5 billion

Following yesterday's Cabinet meeting, Finance Minister Andrzej Raczko, announced that the planned budget deficit in 2004 would reach zł. 45.5 billion and the y/y inflation rate for the same period would be 2.2%. According to the Minister, the government's planned income in 2004 will be zł. 152.7 billion, whereas, spending will amount to zł. 192.8 billion. The government will now present its spending limits to the respective Mini stries. The newly drafted budget does not provide for the zł. 9 billion capital injection from the National Bank of Poland. The Finance Ministry is also considering issuing T-bonds to stitch up any possible shortfall in privatization revenues. According to Raczko, the projected revenues from the sale of the state-owned enterprises would be approximately zł. 7 billion, while the expected GDP growth should reach between 4.5% and 5.5%. (www .onet.pl; Rzeczpospolita, p. B2) J.K.