Government tinkers with 2006 draft budget, to the tune of zł.5 billion

"It is not our budget, but the budget of the previous government. However, we introduced far reaching shifts amounting to zł.5 billion," declared Prime Minister Kazimierz Marcinkiewicz. The revenues were changed the most and increased by over zł.2.8 billion despite the fact that no increase in taxes was introduced. "It will be possible due to better absorption of EU funds. It is scandalously low this year but we hope that next year it will amount to around 50% which will translate into additional VAT revenues," stated Marcinkiewicz. Higher revenues are also to be generated by the new housing construction programme and accelerated programme for construction of roads and motorways. The expenditure is to increase due to, among others, subsidies for fuels for agricultural use, extension of maternity leave, and purchase of vaccines against the bird flu. The budget will save around zł.500 million on cutting bureaucracy and administration. The Prime Minister also hopes to see some savings on the servicing of public debt. "Due to low inflation we count on a decrease of interest rates," he said. (Parkiet, p. 9; Puls Biznesu, pp. 6-7) E.B.