Budget deficit increases, but there is no cause for alarm, says PM

Prime Minister Leszek Miller said on Saturday that the planned increase of the budget deficit is still within a safe margin and it will not provoke a public finance crisis. The same day the government passed its draft 2004 budget. "We treat this deficit increase as a necessity in this case. Without it, we would not be able to support entrepreneurship, or ensure full absorption of EU grants and subsidies" Miller said. The budget draft will be submitted to the Sejm on Tuesday. He added rationalizing public expenditure would be best during a period of economic growth. "Therefore there we do not have to fear that we will have to fight a crisis in public finances" said Miller. However, journalists at his press conference were not convinced and pointed at the failure of the recent government bond issue, and began to draw parallels between the economy and the financial meltdown in Argentina. In related news, according to the CBOS public opinion poll, Prime Minister Leszek Miller is at the top of the list of politicians which are not trusted, while President Aleksander Kwaśniewski is the most trusted politician, with 79% support. (Rzeczpospolita, Sept, 27-28; p. A3) A.Z.