BELGIAN GOVERNMENT TO CUT FINANCIAL REQUIREMENT
Belgian Prime Minister Wilfried
Martens announced to Parliament a plan to reduce the 1987
government financing requirement by 20.6 billion francs.
    He said this will enable the requirement to be held to
419.7 billion francs, against the previous government target of
417.8 billion, or eight pct of gross national product.
    Martens said following a lowering of government estimates
of 1987 nominal GNP growth and a re-estimation by government
departments of 1987 spending, the government calculated that
unless action was taken, the requirement would exceed the
target by 22.5 billion francs.
    Martens said the plan involved raising non-fiscal receipts
by 5.8 billion francs and reducing spending by 14.3 billion.
The remaining 0.5 billion francs will be raised through
treasury operations.
    Martens said the money is being found through a series of
small economies and confirmed that it includes the raising of
two billion francs through the sale of part of the government's
50 pct holding in the gas company Distrigaz.
    Last year, the government announced a major program
designed to cut 1987 spending by 195 billion francs.
    The program was designed to get Belgium out of what the
government said was a "snowball effect" under which the
government constantly borrowed more to finance budget deficits
which were due largely to the cost of servicing and repaying
existing debt.
    In 1986, the government financing requirement is estimated
at 561 billion francs or 11.0 pct of GNP.
 REUTER
