Polish '09 budget gap lower than expected, risks remain

Poland's 2009 budget deficit was lower than expected, the finance minister said on Wednesday, but analysts warned this may not be enough to fend off the risk of breaching legally-binding debt safety levels.

Finance Minister Jacek Rostowski said on Wednesday the 2009 budget deficit stood at 24-25 billion zlotys compared with 27.2 billion seen in the budget. Late last year officials said the actual figure could undershoot the target.
"I think that the result of the 2009 budget is a very good basis for further improvement of public finances in coming years," Rostowski told a news conference.
His deputy, Ludwik Kotecki added the general government deficit -- a wider measure used by the European Commission which also includes local government and state agencies -- was at about 6.3 percent of gross domestic product (GDP).
Poland, the European Union's largest ex-communist member, is also the only one in the bloc to have avoided recession.

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