Lower inflation means merry-go-round budget negotiations for ministries

According to a leading article in Rzeczpospolita the government is having problems in drafting the 2003 budget. One issue is by how much to increase the salaries of public sector workers. The Finance Ministry and tripartite commission had initially agreed upon 4%, but now the ministry wants to lower this to 3.3% to take into account lower inflation. The prognosis for 2003 inflation, which is now for 2.3% and not 3%, will also mean that the ministry will have similar talks with the Labor Ministry over adjusting pensions. There are some rumors that the ministry will seek to lower budget deficit to zl. 39 billion in 2003. (Rzeczpospolita, August 24-25, p. A1) A.D.