Budget forecasts on track says Belka but no further drop in inflation expected

Finance Minister Marek Belka said on Thursday that he did not expect any fur ther drop in inflation, declaring "We have already achieved the level of Eur oland". He also said that he was pleased with the recent interest rate cut, but added that only a reduction of two percentage points would reduce specul ation among analysts over the country's long-term economic outlook. "The pro spect of further modest reductions is a factor that strengthens the zloty", he said. Belka admitted, however, that the discussion over the zloty's excha nge rate would be soothed by recent increases in the value of the euro. He a lso underlined that the government is maintaining its view of next year's bu dget, the deficit of which should not exceed zl. 40 billion. "We start creat ing the budget by establishing the expenditures, and government members agre e that expenses should reach zl. 192.5 billion," the minister said. (Rzeczpo spolita, pp. B1, B2) M.K.