Poland's lawmakers adopt 2018 budget

MarketsAssociated Press

Poland's lawmakers have voted to approve the nation's budget for 2018 that assumes 3.8 percent economic growth and a deficit well within European Union requirements.

The state budget approved Thursday pegs the deficit at no more than 41.5 billion zlotys ($11.8 billion) with income of 355.7 billion zlotys ($102 billion).

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Inflation is foreseen at 2.3 percent and the deficit at 2.7 percent of gross domestic product.

The Senate and President Andrzej Duda still need to endorse the budget bill.

The conservative government is pursuing a generous social policy of benefits for families with small children, which fuels economic growth through greater demand for goods and services. The government says that funds for the bonuses largely come from strict collection of VAT.