SLD expresses support for budget amendment that would increase deficit

The Left Democratic Alliance (SLD) announced yesterday that it supports a budget amendment that would increase the planned deficit. SLD deputy Marek Borowski said such action should be taken before the autumn parliamentary election. However, the finance ministry has as yet not reached a decision on how it intends to deal with the estimated zl.7 billion shortfall. Analysts say that there are only two realistic options: either to cut spending and therefore expose the government to public dissatisfaction, or to go for the SLD proposal and increase the deficit. However, this latter alternative would probably discourage the Monetary Policy Council (RPP) from lowering interest rates in the near future. Some analysts are now suggesting that the best way forward might be to do both things simultaneously. (Rzeczpospolita, p. B1, Gazeta Wyborcza, p. 20) M.K.