Central Bank: budget deficit at 2.8% in 2016

The Central bank NBP said on Friday that the deficit on public finances will stand at 2.8 percent in 2016, in line with the government's estimates included in the budget bill. The NBP assessed that maintaining the deficit at this level is only possible thanks to the one-off revenue of more than PLN 9 billion from the LTE frequencies auction. The central bank also said that keeping the deficit at a safe level of below three percent will be difficult in 2017 due to the changes in  fiscal policy. The NBP said that after the public debt in relation to GDP fell to 47.8 percent in 2015, it may grow again to above 50 percent in 2015 and 2016.