Cabinet to decide today on zl.3.8 billion increase in 2001 budget deficit

The government's policy committee yesterday approved a zl.3.8 billion increase in the 2001 budget deficit target, raising the gap to zl.32.9 billion. Finance Minister Marek Belka had previously signalled his intention to increase this year's deficit target, as an economic slowdown depressed State revenues to below forecasts. The revised budget deficit would account for around 4.5% of gross domestic product (GDP), up from the 3.9%, or zl.29.1 billion, estimated in the current budget. It was not immediately clear what levels of government revenue and spending would be set in the revised 2001 budget. A government statement said only that "the aim of the revision is to pay some of the debt resulting from underestimating budget spending in previous years." The present budget sets revenues at zl.152.5 billion and spending at zl.181.6 billion. "Final decisions regarding budget revision will be made by the entire Cabinet when it meets on Tuesday. But in general the plan aims at making both budget spending and revenue levels realistic," said government spokesman Michal Tober. (Reuters)