TNBiz (TNBiz)
Finance  |  September 14, 2010 05:00:11

The draft state budget for next year goes on tripartism, conflicts are expected


PRAGUE (MEDIAFAX) - The draft state budget for 2011 with a deficit of 135 billion on Tuesday to discuss trade union representatives, employers and government (tripartite). Trade unionists have already announce that they have prepared their own calculations, that the government representatives present.

"We have prepared an analysis that we intend to submit to the government," she told Reuters spokeswoman Czech-Moravian Confederation of Trade Unions John Kasparov.

While trade unions from the start with most of the government's plans do not match. Do they mainly reduce the wage bill by 10 percent and changes in the Labour Code.

Full support, the government does not have employers who do not like the cabinet effort to transfer sick pay from the treasury to the employer or a proposal for charging for data boxes. President of the Confederation of Industry Jaroslav Míl also previously criticized the government's proposals for partial changes in laws, particularly the Labour Code. "Let's make a proper amendment. Also let Auto repair twice," he said recently Mil.

The budget already discussed the government, but negotiations broke off, because there is currently no consensus on the coalition planned deficits for 2012 and 2013. These data are among the medium-term, which by law is part of the state budget.

State revenues are estimated by the Ministry of Finance (MoF) to reach 1.05 billion crowns. Expenditure to climb to 1.18 trillion and the state expects to finance the commitments will be missing 135 billion crowns. Government argues that if undergone planned cuts would increase the deficit by at least another 30 billion.

The ministries will get more money, only some departments such as Ministry of Labour and Social Affairs and the Ministry for Regional Development, managing EU funds.

The deficit represents 4.6 percent of gross domestic product (GDP). It's a bigger commitment than a deficit of 4.8 percent of GDP, which allowed for early government of Jan Fischer.

Necas's cabinet proposes a number of cuts and austerity measures, though some budget chapters grow. For example, the Ministry of Labour and Social Affairs (MLSA) budget year will rise by 7.2 billion.The reason is the increase in expenditure on payment of pensions, which next year will fall by almost 19 billion more than this year. About 800 million crowns in the fall MLSA budget money for social services. The resort is a total expenditure of CZK 483.8 billion budget the most expensive stage.

The volume of all expenditures will increase many times even the Ministry for Regional Development (MRD) to a total of 31.3 billion crowns, it will increase revenues from the EU budget, which goes just over MMR. In total, the Czech Republic next year's run out of more than 117 billion from the EU budget. Contrary to the EU budget levy Czech Republic 35.25 billion crowns should therefore receive more than 81 billion.

For expenditure destitute Union contrary MMR worse off by more than 330 million (total national budget of MMR comes to 2.9 billion).Like other ministries also will be MMR cuts money for salaries, operations and investments.

The most significant increase in the budget boasts Technology Agency of the Czech Republic (TACR), whose budget will rise from just under 52 million this year to nearly 850 million next year, an increase of almost 1535 percent. TACR is a newly created government department responsible for the financial support applied research, development and innovation from the state budget. The fulfillment of these obligations given the mentioned funds.

The increase was seen in chapter debt, of which 76.4 billion crowns this year to rise to 79.6 billion. Most of this money goes only to interest payments on the national debt.

The biggest cuts will affect the Ministry of Transport, which has a year to lose about 28 billion, a decrease in expenditures of more than 37 percent. Transport Minister Vit Barta (VV) began with the savings this year and his first steps include pressure on companies to start to build cheaply. In response to the rejection of all companies stopped building the Railway Infrastructure Administration, the payment of invoices and review all contracts let in the light kind.

The approximately 27 percent of its budget comes as the Ministry of Industry and Trade. In absolute terms this means a reduction in expenditures of almost five billion.

If the government budget in the form approved, will discuss the law of Deputies in three readings. At first reading, MEPs approve the overall budget framework, which is then discussed by parliamentary committees.You may submit amendments, but only those that do not affect the basic characteristics (income, expenditure and deficit) and do not go beyond chapter of the Committee. For example, the agricultural committee may propose the transfer of money between items in a chapter of the Ministry of Agriculture, but total expenditures may not be changed.

In the second reading may submit proposals and members themselves. They can not change the basic parameters of the budget, but may also suggest the movement of money between chapters.

In the third reading, the first vote on the amendments and committee members, eventually voting on the draft budget as a whole. If the House approves the budget, the law goes straight to the president, because the law on the state budget does not endorse the Senate.

George Taborsky,

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