Trade unions criticize draft of state budget for 2013

Czech trade unions on Friday criticized the draft of the state budget for 2013. Union leader Jaroslav Zavadil said the draft’s most serious shortcoming was that both its revenues and expenditures were based on legislation that has not yet come into effect. The draft state budget includes a deficit of 100 billion crowns, or 2.9 percent of GDP. However, the draft is based on the assumption that the Czech GDP will grow by around 1 percent next year, and that new tax legislation will come into effect in January 2013. However, trade union leaders said the deficit could in reality amount up to 160 billion crowns.

Author: Jan Richter