In considering the draft budget for 2001, the Sejm did not approve a
governmen-proposed hike in the Value Added Tax (VAT) on construction
materials and services from 7% to 12%, nor did it agree to raise VAT on
agricultural machines to 12%. According to government estimates, the
budget deficit will be 1.6% of GDP next year, while this year it could
still reach as high as 2.5% of GDP. The Treasury Ministry estimates that
in 2001 privatization income will amount to zl.18 billion, with
Telekomunikacja Polska S.A, Polski Zaklad Ubezpiecien S.A., and very
likely LOT Polish Airlines to be listed on the Warsaw Stock Exchange
(WSE) next year. The budget does not include expected profits from the
UMTS license auction. The general reaction among politicians toward the
draft budget has been rather cautious, while Democratic Left Alliance
(SLD) called it a "virtual" budget. (Rzeczpospolita, p. A1) P.J.
