Government refuses to alter proposed budget

20-09-2013

Representatives of unions, industry and the government met on Friday for three-way talks on the proposal for next year’s budget. Union and industry representatives said that the finance ministry’s draft budget was not conducive enough to economic growth and that the caretaker government should not be so strict in complying with the EU-mandated deficit ceiling of three percent of the GDP. After the talks, Prime Minister Jiří Rusnok announced that the government will not change the 112-billion crown deficit proposed in the draft budget, which is just below three percent of GDP. The outgoing government will be voting on the final proposal next Wednesday, though it will not be discussed by the lower house of parliament until after the general elections in late October. The budget proposal may be significantly altered by the new government and lower house.