Sejm's budget vote raises VAT revenues despite Finance Ministry objections

The Sejm passed the 2002 budget late on Friday evening, setting revenues at zl.145.079 billion and expenditures at zl.185.079 billion, which leaves a de ficit of zl.40 billion. Deputies decided that VAT revenues would be zl.625 m illion higher than the government forecast of zl.41.7 billion, despite Finan ce Ministry protests that it is unrealistic to expect higher income, particu larly after the Sejm decided not to increase the VAT rate for the constructi on sector, as initially proposed by the government. Almost half of the money from extra VAT revenues will be spent on raising teachers' salaries, but onl y if, during the course of the year, the revenues do actually turn out to be higher than initially expected. The budget draft will now head for the Senat e, then the Sejm will vote on possible amendments made by the upper chamber. Finally the bill will be signed by the president, who in this case has no ve to power. (Gazeta Wyborcza, Feb.16-17, p. 22) T.J.