Poland intends to reduce public sector expenditure by 1% of GDP in 2013 and by another 0.8% of GDP in 2014, deputy Finance Minister Maciej Grabowski said in the parliament on Thursday.

"This year public sector expenses are to be reduced by 1 ppt of GDP and in 2014 by 0.8 ppt," Grabowski said.

"We are taking very intensive measures, also on the spending side, in order to bring balance to the public finance, which is of key importance for long-term growth," he added.

On the revenue side, the official said that restoring the previous VAT rate as of 2014 was unlikely.