Lower house approves basic parameters of 2008 budget

The lower house on Tuesday approved the 2008 state budget in its first reading. The proposed budget envisages a deficit of 70.8 billion crowns (3.68 billion dollars) or 2.95 percent of total economic output. The 2008 deficit is below the 3.0 percent of gross domestic product ceiling required for adoption of the single European currency, although Prague has not yet set a target date for the switch from the crown to the euro. Lower house committees can now delve into the finer details of the budget, with a second and final, third, reading scheduled for early December.