PRAGUE, Sept 9 (Reuters) - The Czech government approved a budget draft for 2010 on Wednesday with the highest-ever deficit, boosted by the economic crisis and refusal by main political players to slash spending before an election.
Finance Minister Eduard Janota said the cabinet was proposing a central state budget deficit of 230 billion crowns for the next year. That equals to an overall public sector fiscal gap of around 7.4 percent of gross domestic product.
The government said it would continue discussion on tax hikes and savings that would reduce the gap by about 65-70 billion crowns, but the plan has in advance been rejected by main right and left-wing parties ahead of an election expected by early November.
(Reporting by Robert Mueller, writing by Jan Lopatka) Keywords: CZECH BUDGET/ (prague.newsroom@thomsonreuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Finance Minister Eduard Janota said the cabinet was proposing a central state budget deficit of 230 billion crowns for the next year. That equals to an overall public sector fiscal gap of around 7.4 percent of gross domestic product.
The government said it would continue discussion on tax hikes and savings that would reduce the gap by about 65-70 billion crowns, but the plan has in advance been rejected by main right and left-wing parties ahead of an election expected by early November.
(Reporting by Robert Mueller, writing by Jan Lopatka) Keywords: CZECH BUDGET/ (prague.newsroom@thomsonreuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.