Czech c-bank improves 2012 budget gap outlook to 3% of GDP.

By bne IntelliNews May 14, 2012
The Czech general government deficit is to narrow to 3% of GDP this year from 3.1% in 2011, the central bank said in the latest inflation report published on May 11, 2012 revising its forecast from 3.4% expected earlier. The improvement is thanks to CZK 29bn (EUR 1.1bn) higher tax revenues due to the VAT hike. In the next year, however, the gap is seen widening to 3.8% of GDP due to the halt in economic growth in 2012 and the introduction of a pension reform in 2013 that would lead to a shortfall in social security revenue of CZK 15bn. According to the finance ministry's plans and updated convergence programme, the general government deficit should reach 3% of GDP this year and fall further to 2.9% in 2013 and to 1.9% in 2014. The central bank raised its expectations for this years government debt to 43.2% of GDP from 43% and said next year the debt should reach 45.2%.

Related Articles

Czech CSSD proposes 2014 general and European elections to be held together.

Social Democrats (CDDS), the major Czech opposition party, proposed next year's general and European elections to be held on the same day, CTK news agency reported. CSSD leader Bohuslav Sobotka ... more

Tesco Czech faces fine for selling products containing undeclared horsemeat

The Czech unit of UK retailer Tesco faces a fine of up to CZK 3mn (EUR 116,000) for selling beef lasagne containing undeclared horsemeat, Radio Prague reported. The state-run Agricultural and Food ... more

Czech Senate votes to limit immunity of lawmakers, judges.

The upper house of the Czech parliament, the Senate, voted on March 20 a constitutional amendment to limit the immunity of lawmakers and constitutional judges, Radio Prague reported. Out of the ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335