The Polish government has approved a draft budget for 2013, envisaging the budget deficit at zł.35.6 billion – only slightly higher than the zł.35 billion planned for this year, despite significantly weaker economic growth prospects for 2013.
The government has also altered its 2013 macroeconomic projections. GDP growth is estimated at 2.2 percent – lower than the 2.9 percent contained in previous forecasts.
The projections appear optimistic in the light of the worsening economic outlook, with most analysts seeing growth at 1.5 percent or lower in 2013. Moreover, Finance Minster Jacek Rostowski said at a conference on Wednesday that he didn't foresee any tax increases next year, leading analysts to question where revenues would come from.
Mr Rostowski said that the new macroeconomic assumptions are “realistic,” adding that the budget is based on “the most important principle in these dangerous times in Europe, which is to ensure security for the Polish economy.”
Mr Rostowski and Prime Minister Donald Tusk both admitted that it won't be possible this year to lower public deficit below the 3 percent limit set by the EU.
“This year, we predict the deficit for the entire sector at the level of 3.5 percent of GDP,” said Mr Rostowski.
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