Investors grow impatient as budget amendment is postponed once again

The government debate on the budget amendment was again postponed yesterday in the absence of Finance Minister Bauc's official recommendations, with the Prime Minister promising to re-start the debate today at 8 a.m. Regional Development Minister Jerzy Kropiwnicki announced that "The only estimations we have concern the budget gap of zl 8.5 - 9 billion, assuming that GDP increases by 3%," he stated. According to Bauc's most recent proposal, zl. 16.5 billion needs to be raised in order to repair the budget deficit; zl. 8.6 billion through an additional issue of bonds and securities, zl. 7.5 billion through spending cuts of almost 14% in all departments, and zl. 1.15 billion through a reduction in the allocation for ZUS (Social Insurance Company). Ministers oppose the cuts, claiming the Finance Ministry assumed the most pessimistic scenario to avoid another budget amendment by the end of the year. However, the Prime Minister's financial advisor, professor Marek Belka, estimates a higher gap of zl. 17 billion, adding that the government is already struggling with liquidity. Analysts and economists emphasize the urgency of the budget amendment, amidst warnings of growing investor impatience and that the market may not be able to sustain any further delay. (Gazeta Wyborcza, p. 20) K.K.