Gov't to cut public finance deficit to 1% by 2011?

The deficit reduction plan, due to be submitted to the European Commission later this month, is much more ambitious than the one unveiled last year by the Kaczyński government. The latter envisaged a public finance deficit of 3% of GDP this year, to be cut to 2.5% in 2010. "The decision to accelerate the pace of deficit reduction is strategic for this government," said Deputy Finance Minister Stanislaw Gomułka, adding, "Other decisions, such as those regarding spending levels or tax rates, will be dependent on it". The accelerated reduction in the public finance deficit will be achieved through cuts in non-discretionary spending. (Rzeczpospolita, p. B4) R.M.