RPP declares 2003 budget unrealistic in terms of growth rate projections

The Monetary Policy Council (RPP) has critically evaluated the 2003 budget draft prepared by the Economy Ministry. The RPP claims that the draft in many places is in total contradiction with the economic objectives stated by the government. "We have positively evaluated the the draft in terms of the inflation rate it envisages ... but in view of the economic prospects emerging for 2003, we deem a budget based on GDP growth of 3.5% as far too optimistic," the RPP said in a special announcement, declaring that a 2-3% figure is much more probable. "Proposed increases in expenditure are based on carelessly prepared revenues projections." According to the RPP, the U-turn on reducing corporate income tax and the new energy tax will weaken the public resolve invest, which will have a negative impact on economic growth. (Rzeczpospolita, Oct. 5-6, p. B2) A.Z.