Ministry of Finance ups budget figures to take account of floods

The Ministry of Finance has tabled its budget proposal for 2011 with an extra 127.7 billion crown provision to cover the flood damages at the start of August. The planed budget deficit of 135 billion crowns has been retained with both spending and income boosted by the allotted amount. After much haggling, the Czech government has agreed in principle that a special flood tax will be levied next year as a one off measure only. The ministry’s budget proposal, which still has to be approved by the government and lower house of parliament, counts on expected economic growth of 2.3 percent next year.

Author: Chris Johnstone