Gloomy economic growth predictions herald import tax or higher deficit

According to unofficial sources quoted by Rzeczpospolita, the Finance Ministry has lowered its GDP growth forecast for next year to below 1%. This would bring about a revenue shortfall, which could in turn result in the introduction of the controversial import tax. Another option would be an increase in next year's budget deficit to more than the planned zl.40 billion, a target that until now the government has considered set in stone. Finance Minister Marek Belka is strongly against the import tax, as is the European Union (EU), which will make its opposition clear to Foreign Minister Wlodzimierz Cimoszewicz during his visit to Brussels today. As for the possibility of increasing the deficit, a source close to the Finance Ministry told Reuters that the target for now is still zl.40 billion, but if the economic situation worsens, it could be raised. (Rzeczpospolita, p. B1; Reuters) T.J.