Poland may tweak 2015 budget inflation assumption - Finance Minister
July 10, 2014
The Polish government may amend its inflation forecast on which it will build its 2015 budget, Finance Minister Mateusz Szczurek told the daily Dziennik Gazeta Prawna of the 2.3% CPI figure in 2015 budget plan adopted by the government.
Also Poland's inflation budgeted for 2014 [2.4%] is too high, the Minister said adding that inflation lower by 1 ppt translates to budget receipts lower by PLN 1.5-2.0 billion. However, Poland's budget realization plans are not under threat, Szczurek added.
Poland does face a risk of deflation, but "there will be no tragedy" as Poland's public sector, enterprises and consumers have lower relative debt than Western European countries, which means that the real burden of debt will not increase as fast as in the West, the official added.