Katowice will increase capital expenditures in 2011

The City of Katowice is preparing a budget for the next year. Instead of a weaker economic situation in the country during last two years, Katowice will increase capital expenditures for investments in 2011 which will be higher for about PLN 120 million in comparison to 2010.

This year the capital expenditures are estimated at PLN 532 million. In 2011 Katowice will spent PLN 652 million for investments which is the 22,6 percent growth year-on-year. A total income will amount PLN 1 billion 424 million in 2011, total expenditures will be at around PLN 1 billion 815 million.

“We have a budgetary surplus and free capitals saved last years during prosperity. However, to pay expenses of PLN 652 million the City will have to get a PLN 191 million credit from the European Investment Bank (EIB)” – Danuta Kamińska, Katowice treasurer, said to Puls Biznesu.

The dept ceiling will increase from its PLN 298 million (22,6% of dept-income ratio) this year to PLN 482 million (28,8%) in 2011. Nevertheless the Katowice dept is one of the lowest among the biggest Polish cities and the budgetary policy of the City was valued by Fitch which confirmed last month the long-term foreign and local currency ratings of “A-“ with a “stable” outlook.

source: Puls Biznesu