New budget signed as government spending continues to outstrip revenue

Polish President Alexander Kwaoniewski on Friday signed into law the 2002 national budget, officially adopting a previously set deficit level of zl. 40 billion. The budget proposed by the SLD-led coalition government late this year is an austerity plan, effectively raising taxation and maintaining some spending caps set by the previous government. The measure sets state revenues at zl. 145.08 billion, and government spending at zl. 185.08 billion The indebtedness of the State Treasury increased by 6.4% in 2001, compared to 2000, and reached almost zl. 284 billion. Domestic debts increased by a significant 26.7%, while foreign debts decreased by 21.9%. (Prawo i Gospodarka, p. 7; Reuters) M.T.