Poland records shock budget surplus after July -deputy minister UPDATE |
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Mon, 30 Jul 2007 13:20
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(Adds more from minister, analyst comments)WARSAW (Thomson Financial) - Poland's budget swung to an overall surplus for the year to date after July, compared to the 16 bln zlotys deficit planned, the deputy finance minister responsible for the budget said today.'There are very large delays in spending,' Elzbieta Suchocka-Roguska told Thomson Financial News. 'Many agencies have held up spending until later in the year. The budget has an overall surplus of around 100 mln zlotys'.The large difference in the result from that planned is also due to high budget revenues due to this year's strong growth, she said. A lower deficit, or surplus, cuts the amount the ministry has to borrow on local and international debt markets.Most analysts had expected the cumulative deficit to inch only a touch lower from June, and the news came as a surprise to the majority.However dealers said markets have largely priced in good budget performance this year and the reaction of the debt market was muted, with players also saying that it is still likely spending is simply being delayed till later in the year.'There is only a marginal positive effect on the debt market, investors knew the budget situation this year was very good,' said Jacek Wisniewski, chief economist Raiffeisen Bank.Earlier this month Finance Ministry Zyta Gilowska said Poland's budget deficit this year is likely to be similar to the 25 bln zlotys recorded in 2006, well below the 30 bln zloty cap written into the government's budget bill.pawel.sobczak@thomson.com +48 22 447 2430ps2/jfr/ps2/ejpCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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RPT Poland records shock budget surplus after July -deputy minister 