Government approves budget deficit of 38.1 billion

The Czech government has approved a state budget deficit of 38.1 billion crowns (for an overall fiscal gap of 1.5 percent of GDP) for 2009, as it attempts to reign in spending and push further reforms. On Friday the Finance Minister Miroslav Kalousek called the proposal, which is the equivalent of around 2.5 billion US dollars, “ambitious”, stressing the proposed fiscal trajectory was a return to “civilised levels”. According to the minister, savings cuts across government ministries will be required, although spending in some sectors – such as education – is expected to go up. The 2009 budget plans on spending to drop to 1,053 billion crowns, down from 1,107.3 billion this year.

Author: Jan Velinger