Forecasts for lower GDP and higher deficit to influence budget amendment

By Thursday at the latest the government will accept an amendment to this year's budget draft, as several macroeconomic indicators, most importantly lower economic growth, will likely be different than forecast. GDP growth had been projected at over 5%, but now the government is reportedly considering lowering it to 4.3%. However, senior Finance Ministry adviser Stanislaw Gomulka said that if interest rates are not cut, it could turn out to be as low as 2%. Another key issue is the economic deficit of the budget, which was originally set at 1.6%. However, if all or some of the zl.3 billion from UMTS mobile telecom license fees is spent rather than used to cut the budget deficit, the economic deficit would rise. Other changes in the macroeconomic situation include the unexpected surge of the zloty and low inflation. (Gazeta Wyborcza, p.18; Prawo i Gospodarka, p.1; Reuters) T.J.