Poland

Killing The Budget

Recently the Minister of Finance, Zyta Gilowska, commented that the government budget was tight. Some commentators brought up the Argentinean scenario of a meltdown of the Polish financial system. Ruling PIS party members were quick to quash any discussion of a meltdown of the financial system.

The government continues on its marketing plan and spending spree. It is even going to allocate 5 million The Shrine of God's Providence to build a museum in a new Catholic church built in Warsaw. Populist spending programs get support in spite of what is in the budget.

One source of income that was proposed to support the budget was a projected 5.5 billion zloty income from the privatization of state owned companies. But now that money appears in jeopardy. The three parties that make up the stabilization pact coalition do not want to go forward on privatization. The President has called for “wise privatization”. The sum total probably means that privatization will be stopped and the income will not materialize.

So the budget spending side has been bloated by populist spending and now the income side has been reduced by a number that was necessary for balance even before the added populist items were added.

Something is going to have to give. Will it be the Minister of Finance? How long will she put up with this?

Classified Polnews