Draft 2008 budget gets the thumbs up from economists

The budget is based on assumptions of 5.7% economic growth, a budget deficit of zł.30 billion, annual inflation rate of 2.3%, with a 6% increase in nominal salaries. "The economy is in a very good condition," stated Finance Minister Zyta Gilowska. "If current trends continue, a million new jobs will be created during this government's term in office," she added. According to the assumptions, the unemployment rate is to fall below 10% at the end of next year. Jacek Wiśniewski, an economist with Raiffeisen Bank, stated that the macroeconomic assumptions on which the budget is based are in line with market expectations and are not controversial. However, he added that "It is more difficult to assess the assumed budget revenues and expenditure since we do not know whether they include all heralded changes and reforms." (Puls Biznesu, pp. 1, 6-7; Rzeczpospolita, p. B1; Gazeta Wyborcza, pp. 1, 24) E.B.