Czech state budget in 2008 to be in 70.8 billion crowns deficit

The Czech Republic's state budget for 2008 is expected to have a deficit of 70.8 billion crowns, or 3.5 billion U.S. dollars, the Finance Ministry said on Monday. The deficit should account for 2.95 percent of the budget, which falls within the three percent limit set by the Maastricht criteria for the adoption of the euro.

The deficit in 2008 should be lower than in the previous two years as it reflects the changes incorporated in the fiscal reform proposed by the government and passed by the Chamber of Deputies in August. The expenditures of the state should rise by 66.5 billion crowns, while the state income is expected to be higher by about 87 billion crowns.

Author: Jan Richter