The Polish government has approved the 2004 budget with a zl.45.5-billion deficit

The Polish government has approved the 2004 budget with a zl.45.5-billion deficit. The budget calls for a major acceleration of economic growth thanks to moves like the introduction of a 19-percent personal income tax rate for entrepreneurs. Next year, government receipts are expected to total zl.152.75 billion, expenditure is to reach zl.198.25 billion, and the budget deficit cannot exceed zl.45.5 billion, the government decided in approving next year's budget bill. "Recovery is certain: 3.2-percent gross domestic product growth this year is certain, with 3.5 percent within reach," said Finance Minister Andrzej Raczko, presenting the 2004 budget. "We achieved this thanks to a good rate of export growth and clear signs of improvement concerning unemployment. It is also evident than inflation will not rebound." The government assumes that the GDP will grow 5 percent next year, accompanied by 2-percent inflation. The Ministry of Finance reduced the projection from the previously forecast 2.2 percent. Revenue is expected to reach zl.152.75 billion, and expenditure is set at zl.198.25 billion. The budget deficit is expected to be no lower than zl.45.5 billion. "This level of the deficit is high, but safe," said Deputy Prime Minister and Minister of the Economy, Labor and Social Policy Jerzy Hausner. "We made an attempt to reduce it, but some institutions planning their own budgets [including the President's Office and the Offices of the Sejm and Senate; the government cannot influence their financial plans-ed.] inflated their expenditure by zl.450 million, in our opinion. The government had to cut other spending by this amount of money."