The Polish government expects to raise up to PLN12 billion (€2.7 billion) from various privatisation projects this year, according to Treasury Minister Aleksander Grad.

"I think that sector and strategic investors, by pricing the companies long-term and market-based manner, will allow us to realise those revenues," Grad said.

"Receipts from Enea [privatisation] will be a very significant sum, also revenues from the WSE, the sale of PAK and the chemical group, that is Tarnow, Kedzierzyn and Ciech," he added.

Meanwhile the government is looking to cut its spending this year by PLN 19.7 billion (€4.4 billion) this year in a direct response to the economic downturn.

The cuts will come by reducing spending government ministries and regions administrations by PLN 10 billion and also from savings of PLN 9.7 billion by changing infrastructure investment programmes, Finance Minister Jacek Rostwoski revealed.

"Thanks to the work today the Government approved a proposal which means savings in spending in range of PLN 10 billion in resorts and regions and also a new form of financing infrastructure investment for PLN 9.7 bln," Rostowski said.

Poland will task its National Road Fund, backed by state bank BGK, with securing financing for Poland's down-payment on road projects jointly funded by the EU, the Warsaw Voice reported.

Related bills to allow for the move should be at the cabinet within two to three weeks time, a Ministry of Finance official said.

Poland's 2009 budget deficit forecast to be PLN 18.2 billion.

Robin Bowman