Tightening the belt

Poland's government is seeking to cut administrative spending to the tune of zł.7-8 billion from next year's budget in an effort to reduce the public deficit and support future financial reforms, Prime Minister Donald Tusk announced last week.

"We are looking for unnecessary expenditures on government operations. We need to be able to spend public money better," the PM told the press.

According to government estimates, budget expenditures this year will reach zzł.309 billion and the deficit will not exceed zł.24 billion.

The Prime Minister discussed possibilities for cuts with several government ministers, and said he would periodically carry out inspections of the ministries' work.

"If any of the ministers fails to cooperate to decrease spending they will get a 'yellow card,'" he said.

Tusk also wants public money to be invested better. "There are goals on which the money needs to be spent. What we invest today will bring a hundredfold profit," the Prime Minister said during a televised national address.

Public finance reform and reduction of public spending were flagship promises of Tusk's Civic Platform (PO) party in the campaign before last autumn's parliamentary elections. However, since PO took power, opposition parties have chastised it for inaction on those very fronts. The criticism came to a head last month when the government representative responsible for the preparation of public finance reform, Deputy Finance Minister Stanisław Gomułka, resigned over what he said was a lack of support from the government for his reform plans.

PO has promised that the draft bill on public finances will be ready in June and that it will come into effect at the beginning of next year.