State budget posts higher than expected deficit

The 2006 state budget posted a 97. 3 billion crown deficit in public spending, which is over 13 billion crowns higher than expected, the Finance Ministry said on Tuesday. Parliament originally approved a deficit of 74.4 billion crowns, but the figure was later revised to 83.7 billion. The ministry said lower tax and social insurance revenues were to blame. The target was also exceeded as a result of lawmakers transferring cash to regional government coffers from funds earmarked for mandatory government spending.

The Czech government no longer counts on adopting the European single currency by the original target date of 2010 but has not set any new deadline. In order to adopt the euro, governments must meet strict EU targets for public debt, deficits and inflation.