President signs law on budget for 2013

President Václav Klaus has signed the bill on the state budget for 2013, a third version of the budget prepared by the cabinet of Prime Minister Petr Nečas. No hurdles remain for the budget, which outlines a deficit of 100 billion crowns next year, from coming into effect. The deficit, according to Finance Minister Miroslav Kalousek is expected to be about 5 percent of GDP, rather than the 3.5 percent deficit target expected earlier. The final version of the budget passed in the lower house only last week, on the heels of the government’s tax reform package, which was signed earlier by the president, raising the country’s VAT rates and other taxes.