Budget deficit looks set to grow due to changes in financing local government

The budget deficit in 2003 is likely to reach zl. 45 billion, Rzeczpospolita has unofficially learned, following government talks aimed at setting budgetary guidelines. As the figure exceeds the zl. 40 billion limit recently mentioned by Finance Minister Marek Belka, it seems that the government is trying to quietly withdraw from its restrictive fiscal policy. According to anonymous insiders, a larger deficit might emerge as a result of changes in regulations on the financing of local authorities. This would mean that overall budget expenditures would exceed the planned zl. 192.5 billion. Next week the government will work on macroeconomic principles for the budget. (Rzeczpospolita, p. B1) M.K.