Warsaw Council looks for zl. 1 billion loan to cover deficit

Warsaw City Council hopes to pass its 2003 budget by the end of the year, but some, including the new Mayor, Lech Kaczynski said this will only happen in January. According to the draft, city expenditures will exceed zl. 6 billion, while revenues will only amount to zl. 5 billion. The council will spend zl. 100 million maintaining the roads and zl. 240 million for developing the metro. "The deficit of about zl. 1 billion has to be covered by loans," said Kaczynski. The city debt will continue to grow, as the cost of servicing previous debts will amount to zl. 171 million. Moreover, the council has problems with deciding the level of local taxes for next year and if it is not agreed today, then the city would lose about zl. 60 million. "The delay means that the new tax rate probably will not come into effect until as late February and as a result the city will lose these additional revenues during January," said Warsaw City Treasurer Lucja Konopka. (Puls Biznesu, p. 13) M.M.