Sejm passes "miracle" 2008 budget

The draft budget bill was prepared by the previous government, but the new government and coalition MPs were not happy with it. They were determined to find extra money to raise teachers' pay while cutting the overall budget deficit. And they apparently managed to square the circle. Thanks to cuts in spending on government and to redirecting some funds from the Social Insurance Fund, they were able to raise spending on teachers' pay by zł.1.85 billion, which will translate into a pay increase of between zł.155-348. At the same time, the overall 2008 spending was reduced to zł.308.9 billion from zł.310.4 billion, enabling a cut in the budget deficit by zł.1.5 billion, to zł.27.09 billion. Experts point out the cutbacks are not very impressive and not nearly as far-reaching as they should be. But the new government was racing against the clock and largely had to stick to what its predecessors had left. (Rzeczpospolita, p. B2; Dziennik - The Wall Street Journal Europe, p. 1; Gazeta Wyborcza, p. 33) R.M.