Sejm approves increase in budget deficit in order to avert spending cuts

Late on Friday night, the Sejm approved amendments to this year's budget, increasing the deficit from zl.20.5 billion to zl.29.1 billion due to a shortfall in revenues. Only 152 pro-government deputies in the 460-seat lower chamber of Parliament voted in favor of the change. There were 196 abstentions, an approach taken by the three largest opposition parties: Democratic Left Alliance (SLD), Polish Peasant Party (PSL) and Freedom Union (UW). SLD said that it would not support the amendment as it believes that the 2001 budget was based on false assumptions from the very beginning and that this is the only reason why it needs changing now. However, it would not vote against the amendment either, so as to avoid totally jeopardizing public finances. At the end of last year, both SLD and PSL voted against accepting the 2001 budget draft, but UW had supported it, so many were surprised by its decision to abstain now. If Parliament were not to increase the budget deficit, the government would have to offset the entire revenue shortfall, estimated at zl.10-15 billion, with drastic spending cuts. (Gazeta Wyborcza, July 28-29, p.1) T.J.