Mediafax (Mediafax)
Czech republic  |  November 06, 2012 10:42:59

Government broke off negotiations on the budget on Wednesday


PRAGUE (MEDIAFAX) - Ministers Cabinet Petr Necas (ODS) on Monday at an extraordinary cabinet meeting agreed Wednesday to suspend negotiations on the draft state budget for 2013, said after meeting Prime Minister Necas. Resort Finance plans to reduce total revenues and expenditures of 41 billion crowns.

"Today we have not taken into account the fact that we approved the budget, we are gathered only for informative meeting where we discussed the various proposals of the Ministry of Finance so that they could express the ministers," he said after meeting Prime Minister Petr Necas

Finance Minister Miroslav Kalousek (TOP 09) should budget deficit of 100 billion remain unchanged. "The new budget still does not reach the quality of the original proposal, which we were forced to withdraw," he added.

"The new version of the state budget reduces spending in areas that are in terms of running the economy and its future growth key. Savings to be found in government," said President of the Confederation of Industry of the Czech Republic Jaroslav Hanak. In his view, it is unacceptable that a communication failure between the parliamentary parties has led to actions that adversely affect economic growth. Hanák also upset that the cuts did not find out from the Ministry, but from the media.

Minister Kalousek in recent weeks in the Chamber of Deputies requested the return of the state budget for next year, which led him ODS intraparty problems related to the design of the tax package. Some rebellious members of the Civic Democrats do not like such as the idea is to increase VAT by one percentage point or proposals for the introduction of the so-called millionaire's tax.

Responsible for the finances at the same time again said that an increase in the state budget deficit in excess of three percent of gross domestic product CR bullied him no power in the world. Given that we now can expect higher tax revenues, came the cuts. "Czech citizens simply can not provide services for Romanian Swedish taxes, this is not possible," he had previously heard Kalousek.

Budget remade government must return to 23 Members November.

In 2014, the resort's finance chief wants to promote responsible fiscal policy more strictly - the budget deficit should drop to 2.5 percent of gross domestic product, even a year later to 1.6 percent.

Jan Soukup, soukupj@mediafax.cz

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