Mediafax (Mediafax)
Markets  |  September 19, 2012 04:50:05

The Government will discuss the state budget funds and financing transport infrastructure and housing development

PRAGUE (MEDIAFAX) - The main point of Wednesday's meeting of the government will draft state budget deficit 100miliardovým. Cabinet of Prime Minister Petr Necas (ODS), but also discuss the financing of state funds for Transport Infrastructure (SFTI) and the Housing Development (SFRB).

The Government will consider the draft state budget for next year that a deficit in the amount of 2.9 percent of GDP, 100 billion at a growth of one percent.

In 2013, wants Finance Minister Miroslav Kalousek (TOP 09) to get into the state treasury the same amount of money as the previous year, with 1.084 trillion crowns. At the same time however, should be about five billion crowns to 1.184 trillion crowns reduce costs. 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 subsequently disapproved by parliamentarians, the government would therefore decided lawmakers present again, but this time with a vote of confidence in the Cabinet of Prime Minister Petr Necas.

Consolidation measures include for example slowdown indexation of pensions to 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.

Ministers will also address the budgets of state funds. Ministry of Transport, urges the Government at their meeting yesterday approved the budget of the State Fund for Transport Infrastructure (SFTI) with spending up by 1.5 billion lower. The fund would be the case with the consent of the Cabinet in 2013 to take advantage of 64.5 billion crowns.

Another discussion point will be spending the State Housing Development Fund (SFRB), which should be in 2013 climb to 2.583 billion crowns. But if the fund does not get permission to cross their specified budget limits, the risk is that it will not be able to meet its obligations from previous years.

Nečasův cabinet also decide whether to establish authority for overseeing management of political parties. The proposal responds to a situation where the current legislation on the issue of management of political parties and political movements do not sufficiently address the issue of transparency in their financing, and therefore does not create the conditions for a reduction of corruption. The new law allows for a cost of 25.5 million in the first year and 20.5 million annually in subsequent years.

Among the major topics of Wednesday meeting of the government include the transfer of 2.3 billion crowns from the Land Fund in agricultural programs. This option is signaled in the spring of Agriculture Minister Petr Bendl (ODS), but then talked only about 2.1 billion crowns. Eventually deputies in consultation with the Ministry of the said value increased by 200 million. Nearly a third of money (800 million dollars) should go to the co-Rural Development Programme (RDP) for the next two years. Another 330 million crowns Agriculture Committee members want to use the national agricultural support, also for the next two years.

Another proposal group of MPs who will deal Nečasův cabinet, is thought to legislators and the president of the Economic Committee Milan Urban (CSSD) to reduce the excise tax on gasoline (+1.5 crown) and diesel (2.5 crown).The government has already made several proposals for a negative opinion. Is mainly against the Ministry of Finance. It especially does not share Urban's argument that the tax reduction would increase consumption by more than a fifth and the state could get a tax credit of up to five billion more. According to the Ministry of Finance of the State could contrast of 15.1 billion tax come. Impacts on consumers are in fact uncertain because distributors would increase margins.

Jan Soukup,

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Vláda projedná státní rozpočet i financování fondů dopravní infrastruktury a rozvoje bydlení

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