Economy Minister says budget amendment decision likely on Friday

Economy Minister Janusz Steinhoff has voiced his support for a budget amendment that would both cut spending and increase the deficit. However, member of the Monetary Policy Council (RPP) Dariusz Rosati has warned that such an amendment would be an impediment to the lowering of interest rates. The government expects revenue this year to be between zl.7 billion and zl.7.5 billion lower than it had planned. Economists generally agree that Steinhoff's solution is the most rational, but they disagree on the size of the deficit envisaged in an amendment. "In deciding how much we increase the budget deficit, we have to consider the budget's liquidity needs as well as the falling demand for Polish treasury bills. Most likely the council of ministers will meet and decide this Friday," Steinhoff said in an interview with TVN. (Reuters, Puls Biznesu, p. 8) P.W.