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. Last Updated: 07/27/2016

Poles Reach Compromise On Budget

WARSAW -- The Polish cabinet has approved the final shape of its 1995 budget draft, envisaging a tight deficit equivalent to 3.3 percent of Gross Domestic Product and a fall in year-on year inflation to 17 percent.


Finance Minister Grzegorz Kolodko said Wednesday the draft would be sent to parliament later this week so it could be viewed by the lower house, the Sejm, in two weeks time.


The outline of the budget was approved last week but several ministers have required additional means, totalling 35 trillion zlotys ($1.5 billion).


Kolodko has called the final draft a compromise between spending needs and ability to raise revenues.


Under the draft, the budget deficit would be 87.8 trillion zlotys and year-on-year inflation is expected to fall to 16.9 percent from the current 34 percent.


GDP is expected to grow by five percent next year.