Higher loan debt hidden in 2006 deficit figures

This means that the real deficit was in fact higher than was planned. The money was borrowed in order to subsidize the deficit and other tasks that are also subsidized by the EU. The Finance Ministry announced a few days ago that the deficit in 2006 was lower than expected, by zl.5.5 billion. Rapid economic growth saw more money coming from individually-taxed persons and expenses were also lower than planned. The difference between income and expenses was zl.25 billon instead of 30.5 billion. However, the government borrowed money not only for bridging the deficit gap but also for subsidizing premiums to open pension funds. In 2006, the value of such funds turned out to be zl.2.2 billion higher than expected. The income from privatization was also zl.5.5 less than was planned. This year Poland is likely to see a similar situation. The official deficit is set at zl.30 billion, but the country wants to borrow zl.45.1 billion to subsidize it as well as unrealized profits from privatization. (Rzeczpospolita p. B2) M.M.