1 Feb 2009

Polish govt to detail budget cuts

10:15 am on 1 February 2009

Poland is to outline budget cuts and savings of 17 billion zlotys ($US5 billion) on Tuesday to introduce if the economy slows.

However, Prime Minister Donald Tusk said on Saturday the government will wait until the second half of the year before deciding whether to introduce the savings.

The expected budget deficit is 18.2 billion zlotys for 2009 - down from 24.6 billion zlotys in 2008.

Mr Trusk said long-term projects would be put off until 2010 or 2011 when the economy would be in a better shape.

Analysts say economic growth is expected to slow to about 2% this year.

The central bank has already lowered interest rates to 4.25%. Two cuts were made in December and January after an initial cut in November.