Government writes itself an ideal budget to side step financial problems

The government, meeting in its Klarysew retreat near Warsaw, has unexpectedly increased its 2003 economic growth target yesterday, sparking a flurry of criticism from central bankers who see the move as unjustified. The growth target was upped to 3.5% from a previous 3.1% in a move which would, at least on paper, increase tax revenue in the 2003 budget and help Finance Minister Grzegorz Kolodko narrow next year's fiscal shortfall. "We set the priorities for the budget - fast GDP growth, fighting unemployment and crime, as well as investing in human capital," said Kolodko, who took no questions from reporters after his announcement. Government spokesman Michal Tober, also remained tight lipped restricting his comments to, "A wide range of plans were discussed and the details will be released in due time". Cezary Jozefiak and Wieslawa Ziolkowska, members of the Monetary Policy Council (RPP) blasted the decision as "unjustified". Analysts said the revision was probably a manoeuvre to artificially cut next year's budget shortfall, especially since global growth trends, including those in Poland's main trading partner Germany, paint an increasingly bleak outlook for 2003. Although the economy is expected to grow only by 1% the financial markets took the news and remained quiet. (Reuters)