Finance Minister prepares the way for reductions in budget spending

Within two months the finance ministry will present a series of budget cuts, minister Jaroslaw Bauc has announced. The finance minister said he expects the savings to be smaller than the figure of 1% of GDP suggested on Wednesday by the International Monetary Fund (IMF). "The IMF hopes for a reduction in spending of some zl.6 billion to zl.8 billion. Our forecasts are more optimistic. There are sure to be cuts, but it's too early to talk about the scale," Bauc said. The finance minister said he expects inflation this year to reach between 6% and 6.2%, and GDP to grow by nearly 3.8%. He also called on the Monetary Policy Council (RPP) to cut interest rates. (Rzeczpospolita, p.B2) M.K.