|PM Donald Tusk (left) and Finance Minister Jacek Rostowski (right)|
Courtesy of Flickr/KPRM
After days of deliberation, the government announced on Saturday that the projected deficit for next year's budget is zł.47.7 billion. The deficit will be lower than anticipated because of the recent controversial changes to the pension system.
The reform of the private pension funds (OFEs) system will result in zł.9 billion in deficit savings, according to the Finance Ministry. “It’s a cautious budget,” Prime minister Donald Tusk told reporters. “Hence we will avoid any negative surprises and maintain our reputation with financial markets.”
Before the OFE plan was announced, the government had predicted that the deficit for 2014's budget would be as high as zl.55 billion. The deficit this year, meanwhile, will come in at zl.51.6 billion.
Finance Minister Jacek Rostowski stated that the government had expected economic recovery to begin in mid 2013, but that the recovery had been been delayed by several months, prompting the ministry to look for extra funds for the upcoming year.
These funds will come from an increase in land sales from the Restructuring and Development Agency, and a realignment of excise duty on alcohol, which has not changed for several years, despite inflation. It is now expected to grow by 15 percent.
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