Finance Ministry outlines 2010 budget proposal

The Czech Finance Ministry proposed on Thursday a 2010 budget which counts on a budget deficit of 150 billion crowns or 7.52 billion dollars. That represents 4.6 percent of Gross Domestic Product, slightly higher than the ministry’s most recent forecast and well beyond the 3.0 percent ceiling for adoption of the euro. The budget proposal counts on economic growth of 0.8 percent next year but warns that tight budget discipline must be respected to keep within the limit. This includes no increase in public sector wages and no concession to demands from regional and local government for extra cash.

Author: Chris Johnstone