EC sees Poland's government deficit at 3.4% of GDP in 2012, 3.1% in 2014.

By bne IntelliNews November 8, 2012
Poland's general government deficit that peaked at 7.8% of GDP in 2010 started to decrease in 2011 (to 5.0%), but is now expected to decelerate more slowly, according to autumn forecasts of the European Commission. EC sees the gap at 3.4% of GDP in 2012, 3.1% of GDP in 2013 and 3.0% of GDP in 2014. In the spring, it projected the 2012 and 2013 figures at 3.0% and 2.5%, respectively. In 2012, the deficit is expected to decrease due to the 2011 package of structural consolidation measures, as well as measures included in the 2012 budget . In 2013, on the revenue side, the main deficit-reducing measures include revenues from CO2 emission rights auctions, a further increase in excise duty on tobacco by 5 pps, a continued freeze in PIT thresholds and other changes in PIT and CIT. The main structural measures decreasing expenditure are a further freeze in the wage fund of public sector employees and the start of a gradual increase in retirement age . EC also said that thanks to the appreciation in the zloty's exchange rate, the further reduction in the headline deficit and the government's prudent debt management strategy, the general government debt is projected to fall from 56.4% in 2011 to 55.5% in 2012. Subsequently, it is forecast to slightly increase to 56.1% in 2014 , the Commission concluded.

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