Mediafax (Mediafax)
Markets  |  September 19, 2012 23:55:05

Government has again postponed the draft budget for next year with a deficit of 100 billion crowns


PRAGUE (MEDIAFAX) - The draft state budget for 2013, which envisages a deficit of 2.9 percent of GDP, 100 billion at its Wednesday meeting government again postponed. The condition for keeping the deficit below three percent of GDP, according to Prime Minister Petr Necas (ODS) approval of tax changes Chamber of Deputies.

Next year, wants to minister to the state treasury to get the same amount of money as the previous year, with 1.084 trillion crowns. Government spending should however decrease by five billion crowns to 1.184 trillion crowns. The state budget deficit is exactly 100 billion. Mandatory spending should increase next year by 4.3 billion to 695.1 billion, non-mandatory spending would be contrary to decline by 9.3 billion crowns. In subsequent years, the ministry wants to reduce the deficit in 2014 is expected to decline to 2.5 percent of GDP, and a year later to 1.6 percent.

To sustain the proposed deficit for next year, however, is passing legislation such as increases both the VAT rate by one percentage point to 15 or 21 percent, introduces seven percent "solidarity" tax on people with incomes of more than 100,000 crowns a month, and other changes. The proposal has been rejected by the Senate last week, MPs did not approve, the government would therefore decided lawmakers submit again, but this time with a vote of confidence in the Cabinet of Prime Minister Petr Necas (ODS).

Consolidation measures include indexation of pensions such as slowing the rise in inflation-third and one-third increase in real wages. The condition for the reality of the budget is also able to draw money from public enterprises, the Ministry of Finance is planning for 2013 to convert four billion crowns from the Forests of the Czech Republic to the state budget.

Kalousek Department is convinced that the proposed measures will save 25.6 billion crowns, on the revenue side wants to get 32.4 billion crowns. Without these steps, the budget deficit climbed up to 158 billion crowns.

Ministry of Finance foresees GDP growth next year by one percentage point, inflation is expected to reach a level of 2.2 percent. Consolidated gross government debt is expected to increase by the end of next year to 1.82 billion crowns, which is 46.4 percent of GDP. National debt is 94.1 percent of the total debt, the rate of growth slows but year.

Officials note that the approved budget for this year may fail to meet the shortfall could reach up to 115 billion, which would be about 10 billion more than last year Nečasův cabinet approved. To blame is to stop drawing from all operational programs, which occurred in the spring.During holidays, some flows from the EU to the Czech treasury restored.

Jan Drahorád, Jan Soukup, drahorad@mediafax.cz

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Vláda opět odložila návrh rozpočtu na příští rok se schodkem 100 miliard korun

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