Budget deficit forecast exceeds expectations

Positive forecasts show that the Polish budget deficit will be smaller than originally thought, reported Dziennik Gazeta Prawna. The goal is to have a budget deficit of 3.3 percent of the GDP at the end of the current year. Next year, the deficit should be as low as 2.5 percent. The entire deficit will amount to less than PLN 30 million. This is almost PLN 20 million less than the EU forecast.  Value-Added Tax revenues have proven to be higher than expected. On the other hand, lower profitability of bonds and private retirement fund reform have lowered Poland's debt servicing costs. With a lower budget deficit Poland is one step closer to joining the Eurozone.