Growing inflation to boost budget

"It is already known that the increase in prices will be higher than estimated while settling the state finances for 2007," said Rafał Benecki from ING Bank Śląski. He went on to say that the budget bill estimates the year-on-year inflation to amount to 1.9%, however, according to economists it will instead hold firm between 2.2% and 2.4%. Acknowledging new expenditures, such as lowering the disability contributions, the additional revenues will allow the budget deficit to be lowered from zł.30 billion to around zł.25-26 billion. (Dziennik, The Wall Street Journal Polska, p. 2) A.K.